The basic steps to transfer money from PayPal to your bank account
To move money from PayPal to your bank account, you log into PayPal, go to your Wallet, select your bank account, and request a transfer. PayPal then sends the money to that account over the next few business days. The process is free if you choose the standard transfer speed, though PayPal offers a faster option that costs a small fee.
Before you can transfer anything, you need to link a bank account to your PayPal account. This means giving PayPal your account number and routing number so it knows where to send your money. PayPal verifies the account by depositing two small amounts (usually under $1 each) into your bank account, then asking you to confirm those amounts. This verification step protects both you and PayPal by proving you actually own the account.
Once your bank account is linked and verified, transferring money takes just a few clicks. You do not need to do anything special or contact anyone — the transfer happens automatically on the schedule you choose.
Key Takeaways
- You must link and verify your bank account with PayPal before you can transfer money, which involves confirming two small deposits PayPal makes to your account.
- Standard transfers are free and take one to three business days, while when ready transfers cost a percentage of the amount and arrive within minutes.
- You can transfer money from your PayPal balance, from a linked debit or credit card, or directly from your bank account through PayPal's transfer feature.
- Transfers work the same way whether you received money from selling something, getting paid by someone else, or adding your own funds to PayPal.
How to link your bank account to PayPal for the first time
Start by logging into your PayPal account on a computer or the PayPal app. Go to Settings (usually a gear icon), then select Wallet or Bank Accounts. Choose the option to add a bank account. PayPal will ask for your bank's name, your account type (checking or savings), your account number, and your routing number.
Your routing number is a nine-digit code that identifies your specific bank. You can find it on the bottom left of any check you have, or by calling your bank and asking for it. Your account number is usually on the bottom of your checks as well, or you can log into your bank's website to find it.
After you enter this information, PayPal deposits two small amounts into your account — usually between 1 and 99 cents each. This takes one to two business days. Once the deposits appear in your bank account, you go back to PayPal and confirm the exact amounts. This verification proves you own the account and prevents someone else from linking your bank account without permission.
Standard transfers versus when ready transfers
Standard transfers are free and take one to three business days. Your money moves from PayPal to your bank account on a schedule PayPal controls. This is the slowest option but costs nothing. Most people use standard transfers when they are not in a hurry.
when ready transfers arrive within minutes but cost a percentage of the amount you are sending — usually between 1 and 2 percent. So if you transfer $100 when ready, you might pay $1 to $2 in fees. This option makes sense only when you need the money right away and the fee is worth it to you.
Both types of transfer go to the same linked bank account. You choose which speed you want each time you make a transfer. PayPal shows you the fee before you confirm, so you always know what it will cost.
What happens if your bank account is not verified yet
If you have not completed the verification step, PayPal will not let you transfer money to your bank account. You will see a message telling you to verify your account first. At that point, you need to wait for the two small deposits to show up in your bank account, then confirm the amounts in PayPal.
This verification usually takes one to two business days from when you first link the account. If more than a week passes and you still do not see the deposits, contact your bank to make sure they are not being filtered as spam or held for review. Once you confirm the amounts, your account is verified and you can transfer money whenever you want.
Where the money comes from when you transfer
When you request a transfer to your bank account, PayPal takes the money from your PayPal balance first. Your balance is the money sitting in your PayPal account right now — money you received from someone else, money you added yourself, or money from a sale.
If your PayPal balance is not enough to cover the transfer, PayPal can pull the rest from a linked debit card or credit card, though this usually costs a fee. To avoid this, transfer only the money you actually have in your PayPal balance. You can see your current balance at the top of your Wallet page.
Some people also use PayPal's transfer from bank account feature, which lets you move money directly from your linked bank account to PayPal, then transfer it back out. This is rarely necessary and just adds extra steps.
How long transfers actually take
Standard transfers take one to three business days. This means weekdays only — transfers do not process on weekends or federal holidays. If you request a transfer on a Friday afternoon, it might not arrive until Tuesday or Wednesday.
when ready transfers arrive within minutes, usually within 30 seconds. However, when ready transfers are only available if you have verified your bank account and met PayPal's other requirements, which vary by account age and history.
The time shown in PayPal when you request a transfer is an estimate. Actual timing depends on your bank's processing speed as well as PayPal's. Some banks are slower than others at accepting incoming transfers. If your transfer does not arrive within the stated timeframe, contact PayPal with your transaction ID (a number PayPal gives you when you make the transfer).
Troubleshooting transfers that do not go through
The most common reason a transfer fails is that your bank account information is wrong or your account has been closed. PayPal will send you a message explaining why the transfer did not work. If this happens, check that your account number and routing number are correct, and confirm with your bank that the account is still open and active.
Another reason transfers can fail is if PayPal suspects fraud or if your account has been flagged for review. In this case, PayPal will contact you directly and may ask you to verify your identity or provide additional information. This is a security measure and usually resolves within a few business days.
If you have a question about a specific transfer, find the transaction in your PayPal activity history, click on it, and look for a "Contact us" or "Help" button. PayPal's support team can see exactly what happened and help you resolve it.
Frequently Asked Questions
Can I transfer money to someone else's bank account through PayPal?
No. Transfers from PayPal go only to a bank account linked to your own PayPal account. To send money to someone else, use PayPal's "Send Money" feature instead, which lets you pay another person directly. That person can then transfer the money to their own bank account if they want.
What if I do not have a bank account yet?
You cannot transfer money from PayPal without a linked bank account. If you do not have one, you can open a basic checking account at most banks or credit unions. Some banks offer accounts specifically for people new to banking, with lower fees and simpler requirements. Once your account is open and verified with PayPal, you can transfer money.
Do I have to pay taxes on money I transfer to my bank account?
Transferring money to your bank account does not create a tax event by itself — you only owe taxes on money you earned or received as income. However, if the money in your PayPal account came from selling things or providing services, you may owe taxes on that income. Keep records of where the money came from so you can report it correctly to the IRS.
Can I set up automatic transfers from PayPal to my bank account?
PayPal does not offer automatic recurring transfers. You have to request each transfer manually. However, you can transfer money as often as you want, and the process takes only a few seconds once your account is set up.
What if my transfer shows as pending for more than three business days?
Contact PayPal with your transaction ID and ask them to investigate. Transfers occasionally get delayed by your bank's processing system or by PayPal's fraud review. PayPal can see where your transfer is in the system and tell you what is happening. If there is a problem, they can usually resolve it or resend the transfer.