The fastest way is a standard transfer, which takes one to three business days and costs nothing
PayPal lets you move money to a linked bank account in three ways: a standard transfer (free, one to three business days), an when ready transfer (fee charged, arrives in minutes), or a withdrawal to a debit card (free, one business day). Most people use the standard transfer because it costs nothing and the wait is short enough for ordinary bills. when ready transfer makes sense only when you need the money today and the fee is worth it to you.
To set up any transfer, you need a bank account already linked to your PayPal account. If you have not done this yet, you will add it during the transfer process — PayPal will ask for your routing number and account number, which you can find on a check or by logging into your bank's website.
Key Takeaways
- Standard transfers are free and arrive in one to three business days; when ready transfers cost a percentage of the amount and arrive within minutes.
- You must link your bank account to PayPal before you can transfer money, and you can do this the first time you initiate a transfer.
- PayPal holds new linked accounts for up to 21 days while they verify the account is real, during which you can receive transfers but not send them.
- If a transfer fails, PayPal will return the money to your PayPal balance within three to five business days and tell you why it bounced.
- Transfers from a PayPal balance are different from transfers from a PayPal credit line or merchant account, which have their own rules and timelines.
How to start a standard transfer in four steps
Log into PayPal on a computer or open the PayPal app. Tap or click Wallet (on mobile, this is at the bottom of the screen). You will see your PayPal balance and any linked cards or bank accounts.
Click Transfer Money or the money-transfer icon. PayPal will ask where you want to send the money. Select Transfer to Your Bank. If you have not linked a bank account yet, PayPal will prompt you to add one now — enter your routing number and account number, and PayPal will verify the account over the next few days.
Enter the amount you want to transfer. PayPal will show you the arrival date (usually one to three business days from now). Review the details and click Transfer Now. PayPal will confirm the transfer and show you a reference number — save this in case you need to track the transfer later.
The money leaves your PayPal balance when ready, but it does not arrive in your bank account until the date PayPal showed you. You can cancel a standard transfer only within 30 minutes of starting it; after that, you have to wait for it to arrive and then contact your bank if something goes wrong.
When to use when ready transfer instead
when ready transfer sends money to your bank account in minutes instead of days, but PayPal charges a percentage of the amount — usually between 1% and 2%, though the exact fee depends on your account history and the amount you are transferring. For a $100 transfer, you might pay $1 to $2. For a $1,000 transfer, you might pay $10 to $20.
The process is the same as a standard transfer: go to Wallet, click Transfer to Your Bank, enter the amount, and select when ready Transfer instead of the standard option. PayPal will show you the fee before you confirm. The money should land in your account within 30 minutes, though it can take up to a few hours during high-traffic periods.
when ready transfer makes sense if you need cash today for an emergency, or if you are moving money for a time-sensitive reason and the fee is worth the speed. It does not make sense for routine transfers or if you can wait a few days.
What happens when you link a new bank account
The first time you link a bank account to PayPal, the account goes into a verification period that lasts up to 21 days. During this time, you can receive transfers to the account, but you cannot send money from PayPal to it. PayPal does this to confirm the account is real and belongs to you.
PayPal verifies the account by making two small deposits (usually under $1 each) to your bank account. You will see these deposits appear in your bank account within one to two business days. Once they arrive, you go back to PayPal, click on the bank account in your Wallet, and enter the two amounts PayPal deposited. This confirms you have access to the account.
After you confirm the amounts, the account is fully linked and you can transfer money to it when ready. If you do not confirm the amounts within 21 days, PayPal will reverse the deposits and you will have to link the account again.
Why a transfer might fail and what to do
A transfer fails most often because the routing number or account number was entered wrong, the account has been closed, or the account is flagged by your bank as a fraud risk. PayPal will send you a notification (usually by email) explaining why the transfer bounced. The money goes back to your PayPal balance within three to five business days.
If the reason is a wrong account number, you can try again with the correct information. If your bank rejected the transfer as a fraud risk, call your bank and tell them you authorized the transfer from PayPal. Your bank may need to whitelist PayPal as a trusted sender before the next transfer will go through. If the account is closed, you will need to link a different account.
Transfers that fail do not count against any limit PayPal has on how much you can transfer. Once the money is back in your PayPal balance, you can try again.
Transfers from PayPal Credit and business accounts work differently
If your PayPal balance comes from PayPal Credit (a line of credit PayPal offers), you cannot transfer that money to a bank account — you can only use it to pay merchants. You have to pay off the PayPal Credit balance first, and then transfer your own money if you have any.
If you have a PayPal business account or merchant account, transfers to your bank account follow the same process but may have different daily or monthly limits depending on your account type. Business accounts can also set up automatic transfers on a schedule (daily, weekly, or monthly), which standard personal accounts cannot do.
Check your account settings under Wallet to see what type of account you have and whether any limits explore to you.
Frequently Asked Questions
Can I transfer money to someone else's bank account through PayPal?
No. PayPal transfers go only to a bank account in your own name that is linked to your PayPal account. To send money to someone else, use PayPal's peer-to-peer transfer feature (send money to their email or phone number) or ask them to link their own bank account and transfer the money themselves.
What if my bank account is not showing up in my PayPal wallet?
The account may still be in the verification period, or PayPal may have removed it if it was inactive for a long time. Go to Wallet, click Link a Bank Account, and add it again. If it is still in verification, you will see a message saying so.
Is there a limit to how much I can transfer at once?
PayPal's limits vary by account age, history, and whether you have confirmed your identity. New accounts may have lower limits (sometimes $500 to $1,000 per transfer). Older accounts with good history usually have higher limits. Check your account settings or contact PayPal support to see your specific limit.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring your own money is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable whether it stays in PayPal or you transfer it to your bank. Keep records of where the money came from.
What if the money arrives in my bank account but I did not authorize the transfer?
Contact PayPal support when ready and report the unauthorized transfer. PayPal can reverse it and return the money to your account. Also contact your bank and report the transaction as unauthorized so they can flag your account for fraud monitoring.