The basic steps to transfer PayPal money to your bank
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 the bank account you've linked — usually within one to three business days, though it can take up to five depending on your bank. You don't pay a fee for this transfer if you choose the standard speed option.
The money doesn't move when ready. PayPal holds the transfer for a day or two before sending it to your bank, and then your bank takes another day or two to post it to your account. During that time, the money is in transit and you can't spend it from either place. This is normal and expected — it's how the banking system works when money moves between different companies.
You can only transfer to a bank account that you've already added to your PayPal account and verified. PayPal verifies accounts by depositing two small amounts (usually under a dollar each) into your bank account, then asking you to confirm those amounts. This takes a few days but only happens once per bank account.
Key Takeaways
- You must link and verify your bank account in PayPal before you can transfer money to it, which involves confirming two small deposits PayPal makes to your account.
- Standard transfers take one to five business days total, with no fee, while PayPal's faster option (if available in your area) costs a small percentage of the amount you transfer.
- The money leaves your PayPal balance when ready when you request the transfer, but doesn't arrive in your bank account for several days.
- You can transfer any amount from your PayPal balance, but some accounts have daily or monthly limits that PayPal will show you before you confirm.
How to link your bank account to PayPal for the first time
Go to your PayPal account settings and select "Wallet" or "Banks and Cards" (the exact name varies depending on whether you're on the app or website). Choose "Link a Bank Account" and enter your bank's name, your account type (checking or savings), your account number, and your routing number. Your bank statement or the back of a blank check will have both of these numbers.
After you enter this information, PayPal will tell you it's pending verification. Within a few business days, two small deposits will appear in your bank account — usually between $0.01 and $0.99 each. Log back into PayPal, go to the bank account you just added, and enter those two amounts. Once PayPal confirms them, your account is verified and ready to use for transfers.
If you can't find your routing number, call your bank's customer service line or log into your online banking and look for it in the account details section. Every bank has a routing number; it's not optional information.
What happens when you request a transfer
When you click "Transfer to Bank" in PayPal and select your bank account, the money leaves your PayPal balance right away. You'll see it disappear from your available balance, and PayPal will show you a confirmation number and an estimated arrival date. That estimated date is usually three to five business days out, though it can be sooner.
The money then sits in PayPal's system for a day or two before PayPal actually sends it to your bank. Your bank receives it and processes it, which takes another day or two. You'll see the money in your bank account when your bank has finished processing it — not when PayPal sends it.
If you transfer on a Friday evening, the money won't arrive until the following week because banks don't process transfers over weekends. Holidays also pause the clock. If PayPal's estimated date falls on a weekend or holiday, add extra days to when you expect to see the money.
When to use the faster transfer option
PayPal offers an when ready or next-day transfer option in some areas, but it costs money — usually between 1% and 2% of the amount you're transferring. This means if you transfer $100 and the fee is 1.5%, you'll pay $1.50 and receive $98.50 in your bank account.
The faster option is worth considering if you need the money urgently and the fee is small relative to what you're transferring. For a $500 transfer with a 1.5% fee, you'd pay $7.50 to get the money one to two days sooner. For a $50 transfer, that same fee would be $0.75, which might not be worth it.
Not all PayPal accounts have access to faster transfers, and availability varies by location and bank. PayPal will show you whether the option is available for your account before you request the transfer, and it will show you the exact fee.
Limits on how much you can transfer
PayPal sets limits on how much you can transfer in a single transaction and how much you can transfer in a day or month. These limits vary based on how long you've had your account, how much activity you've had, and whether PayPal has verified your identity. A brand-new account might have a daily limit of $500, while an older account with lots of history might have a limit of $5,000 or more per day.
Your bank may also set its own limits on how much money can be deposited into your account in a single day. This is separate from PayPal's limits. If you're transferring a large amount, check both PayPal and your bank's policies before you request the transfer.
When you request a transfer, PayPal will show you your current limit before you confirm. If you're at or near your limit, you may need to wait until the next day or next month to transfer more money. PayPal's limits reset daily or monthly depending on the type of limit.
What to do if the transfer doesn't arrive on time
If your transfer hasn't arrived by the date PayPal estimated, wait one more business day before contacting anyone. Transfers sometimes take the full five business days even when PayPal estimates three. If it's been five business days and the money still hasn't arrived, log into PayPal and look for the transfer in your transaction history.
Click on the transfer and look for a status. If it shows "completed," the money has left PayPal and your bank is responsible for posting it. Contact your bank's customer service and give them the transfer confirmation number from PayPal. Your bank can see the incoming transfer and tell you why it hasn't posted yet.
If PayPal's status shows "pending" or "in progress" after five business days, contact PayPal's customer service through the Resolution Center in your account. Have your confirmation number ready. Transfers rarely get stuck, but when they do, PayPal can usually see where the problem is and fix it.
Transferring money when you don't have a bank account yet
If you don't have a bank account, you can't transfer money from PayPal to a bank. You'll need to open a bank account first. Many banks offer basic checking accounts with no monthly fee, and some credit unions have accounts specifically for people new to banking. Once you have an account and a routing number, you can link it to PayPal and transfer money.
While you're waiting to open a bank account, your money is safe in PayPal. You can use it to pay people through PayPal, make purchases online at stores that accept PayPal, or request a PayPal debit card if you want to spend the money at physical stores. But to move the money out of PayPal and into a traditional bank account, a bank account is required.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account that's linked to your own PayPal account. If you want to send money to someone else, you can send it through PayPal to their email address or phone number, and they can then transfer it to their own bank account. You cannot directly deposit into another person's bank account from PayPal.
What if I enter the wrong bank account number?
PayPal will attempt to send the money to the account number you provided. If the number is wrong, the transfer may be rejected by the bank and returned to PayPal, or it may go to a different account. Contact PayPal when ready if you realize you made a mistake before the transfer is processed. If the money has already been sent, PayPal can sometimes recall it, but this depends on how far along the transfer is.
Do I have to pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank is not a taxable event by itself — you're just moving money you already have. However, if that money came from selling items or providing services, it may be subject to income tax. PayPal reports large transactions to the IRS, so keep records of where your PayPal money came from.
Can I set up automatic transfers from PayPal to my bank?
PayPal does not offer automatic recurring transfers. You have to request each transfer manually. However, you can transfer money as often as you want — there's no rule against transferring daily or weekly as long as you stay within your daily and monthly limits.
What if PayPal says my bank account is not verified?
Your bank account must be verified before you can transfer money. If PayPal says it's not verified, check that you entered your routing number and account number correctly. If you're certain they're correct, wait a few more business days — verification can take up to a week. If it's been longer than a week, contact PayPal to confirm the verification deposits were sent to your bank.