How to transfer your PayPal balance to a linked bank account
You can move money from PayPal to your bank account in a few minutes using PayPal's transfer tool, though the money won't arrive when ready. The process is straightforward: link your bank account to PayPal if you haven't already, then use the "Transfer Money" button in your wallet to send funds. Standard transfers take one to three business days; PayPal also offers an when ready transfer option that costs a small fee and completes within 30 minutes.
The method you use depends on how quickly you need the money and whether you're willing to pay a fee. Most people use the free standard transfer and straightforward plan ahead. If you need the money the same day, when ready transfer is available but costs between 1.5% and 2% of the amount you're sending.
Key Takeaways
- Standard transfers from PayPal to a linked bank account are free and take one to three business days.
- You must link your bank account to PayPal before you can transfer money, which requires your routing number and account number.
- when ready transfers cost 1.5% to 2% of the amount transferred and complete within 30 minutes.
- PayPal holds some transfers for review if the account is new or the transfer amount is unusually large.
- Money sent to a closed or incorrect bank account will be returned to your PayPal balance, usually within five to ten business days.
Linking your bank account before your first transfer
PayPal won't let you transfer money until you've connected a bank account. To do this, log into PayPal on a computer or phone, go to your Wallet, and select "Link a bank account." PayPal will ask for your bank's routing number and your account number—both appear on the bottom left of a check, or you can find them by logging into your bank's website.
After you enter this information, PayPal deposits two small amounts (usually under $1 each) into your bank account within one to two business days. You'll then need to confirm those amounts by entering them back into PayPal. This verification step proves you own the account and prevents someone else from linking your bank account without permission.
Once verified, your bank account stays linked to PayPal until you remove it. You don't have to re-verify it for future transfers.
Standard transfer: free but slower
The standard transfer option costs nothing and is the default choice for most people. After you select "Transfer Money" in your PayPal wallet, choose your linked bank account as the destination, enter the amount, and confirm. PayPal will show you an estimated arrival date—usually one to three business days from the date you initiate the transfer.
The timing depends on your bank and the day of the week. Transfers initiated on a Friday may not arrive until Tuesday or Wednesday because banks don't process transfers on weekends. If your bank is small or regional, it may take the full three days. Large national banks often process transfers faster.
PayPal counts the transfer as complete once it leaves PayPal's system, not when your bank receives it. If money doesn't arrive within the stated window, contact your bank first—the delay is usually on their end, not PayPal's.
when ready transfer: faster but with a fee
If you need money the same day, PayPal's when ready transfer option will send it to your bank account within 30 minutes. The cost is 1.5% of the amount for most users, though some accounts are charged 2%. For a $100 transfer, you'd pay $1.50 to $2.00.
when ready transfer is available only if your bank is on PayPal's list of supported institutions—most major U.S. banks are included, but some smaller or regional banks are not. When you select when ready transfer, PayPal will tell you when ready whether your bank qualifies. If it doesn't, you'll have to use standard transfer instead.
The 30-minute window starts when you confirm the transfer. Money usually arrives faster, but PayPal's may provide is 30 minutes. Your bank may take a few additional minutes to post it to your account.
When PayPal holds a transfer for review
PayPal sometimes delays a transfer while it reviews the transaction for fraud or unusual activity. This happens most often if your account is brand new, if you're transferring a much larger amount than usual, or if PayPal detects something that looks suspicious. When a transfer is held, PayPal sends you a notification and tells you how long the review will take—usually 24 to 72 hours.
During a review, your money stays in your PayPal balance and hasn't left yet. You can cancel the transfer if you change your mind, and the money will remain available in your account. Once the review clears, the transfer proceeds on its normal timeline.
If PayPal denies the transfer, it will explain why in the notification. Common reasons include an unverified bank account, a mismatch between the name on your PayPal account and the name on your bank account, or a pattern that looks like money laundering. If this happens, you can contact PayPal support to ask what went wrong and whether you can try again.
What happens if the transfer goes to the wrong account
If you accidentally enter the wrong account number or routing number, the money will be sent to that account instead of yours. PayPal cannot recall the transfer once it's left their system. Your bank can contact the receiving bank and ask them to return the money, but this process takes time and isn't may provide to work.
If the receiving bank returns the money, it goes back to your PayPal balance within five to ten business days. If the receiving bank keeps it or can't locate it, you'll need to file a dispute with PayPal and provide proof that you sent it to the wrong account. PayPal may be able to help, but they have limited power once the money has left their system.
Always double-check the routing number and account number before you confirm a transfer. Paste them into a text editor and compare them to your bank documents or your bank's website to catch typos.
Transfers from PayPal Credit or PayPal Working Capital
If your PayPal balance comes from PayPal Credit (a line of credit PayPal offers), you cannot transfer it to your bank account. PayPal Credit is meant to be spent with PayPal merchants, not withdrawn. The same applies to PayPal Working Capital, which is a loan for business owners—those funds must stay in your PayPal account and be used for business purposes.
You can transfer only money that came from your own deposits, sales, refunds, or payments from other people. If you're unsure whether your balance is may be able to access, log into PayPal and try to initiate a transfer—PayPal will tell you if the money can't be transferred and why.
Frequently Asked Questions
Can I transfer money to someone else's bank account?
No. PayPal's transfer tool only sends money to a bank account that's 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. They can then transfer that money to their own bank account if they want.
What if my bank account is closed?
If you transfer money to a closed bank account, the receiving bank will reject it and send it back to PayPal. The money returns to your PayPal balance within five to ten business days. You'll need to link a different, active bank account and initiate a new transfer.
Do I have to transfer my entire PayPal balance?
No. You can transfer any amount up to your full balance. PayPal doesn't require you to empty your account. Many people keep a small amount in PayPal for online purchases and transfer the rest to their bank.
Why is my transfer taking longer than expected?
Standard transfers usually take one to three business days, but delays happen if the transfer was initiated on a Friday or weekend, if your bank processes transfers slowly, or if PayPal held the transfer for review. Contact your bank to confirm they've received it. If it's been more than five business days, contact PayPal support.
Can I cancel a transfer after I've started it?
Yes, but only before it leaves PayPal's system. Once the transfer has been sent to your bank, PayPal cannot recall it. If you initiated a transfer and it hasn't completed yet, log into PayPal and look for a cancel option next to the pending transfer. After it's marked as sent, you'll have to wait for it to arrive and then send it back manually if you change your mind.