How to Move Money From PayPal to Your Bank Account

The fastest way to get your PayPal balance into your bank account

You can transfer money from PayPal to your bank account in one of three ways: an when ready transfer (which costs a small fee and arrives within minutes), a standard transfer (which is free but takes one to two business days), or a withdrawal to a debit card linked to your PayPal account. The method you choose depends on how quickly you need the money and whether you want to pay a fee.

Before you transfer anything, you need to link a bank account to your PayPal account. PayPal will verify the account by depositing two small amounts (usually under $1 each) into your bank, which you then confirm in your PayPal settings. This one-time setup takes a few days but only happens once.

Key Takeaways

• Standard transfers are free and take one to two business days; when ready transfers cost between 1.5% and 2% of the amount and arrive within minutes.
• You must link and verify a bank account in your PayPal settings before any transfer can happen.
• PayPal holds some transfers for up to 21 days if your account is new, you have not transferred before, or the amount is unusually large.
• If your transfer does not arrive after the stated time, contact your bank first — the money may be pending on their end, not PayPal's.

How to link your bank account to PayPal

Open PayPal on your computer or phone and go to your account settings. Look for the section labeled "Wallet" or "Bank and Cards" (the exact name varies by device and region). Select "Link a Bank Account" or the plus sign next to "Bank Accounts."

Enter your bank's routing number and your account number. You can find both on a check, or log into your bank's website and look for account details. PayPal will ask whether the account is a checking or savings account. After you submit this information, PayPal deposits two small amounts into your account — usually within one to three business days.

Once those deposits appear in your bank account, go back to PayPal and confirm the amounts. PayPal will then mark the account as verified. You can now transfer money to it. This verification step protects both you and PayPal by proving you actually own the account.

Standard transfers: free but slower

A standard transfer moves your PayPal balance to your linked bank account at no cost. The money usually arrives in one to two business days, though PayPal's terms say it can take up to three to five business days in rare cases. Weekends and bank holidays do not count as business days, so a transfer you start on Friday afternoon may not land until Wednesday.

To start a standard transfer, go to your PayPal wallet, select "Transfer Money," and choose "Transfer to Your Bank." Select the bank account you want to use, enter the amount, and confirm. PayPal will show you the expected arrival date before you finalize the transfer.

Standard transfers work well if you are not in a hurry and want to avoid fees. They are also the default option for most users, so if you have never paid for a faster transfer, this is what you have been using.

when ready transfers: fast but with a fee

An when ready transfer moves money from PayPal to your bank account within minutes, but PayPal charges a fee of 1.5% to 2% of the amount you transfer (the exact percentage varies by region and account type). For example, transferring $100 would cost $1.50 to $2.00.

To use an when ready transfer, follow the same steps as a standard transfer, but select "when ready Transfer" instead of the standard option. PayPal will show you the fee before you confirm, so you know exactly what you are paying. The money should appear in your bank account within 30 minutes, though it sometimes takes longer if your bank is slow to process incoming transfers.

when ready transfers are useful when you need cash quickly — for example, if you sold something on eBay and need to pay a bill the same day. For everyday transfers, the fee usually is not worth the speed.

Why PayPal sometimes holds your transfer

PayPal may hold a transfer for up to 21 days if your account is brand new, if you have never transferred money before, or if the amount is much larger than your usual transfers. This is a fraud prevention measure. You will see a message in your PayPal account telling you the transfer is on hold and when it will be released.

If your account has been active for a while and you transfer regularly, holds are rare. But if you just created your PayPal account or you are transferring a large sum for the first time, expect a delay. There is nothing you can do to speed this up — you have to wait for PayPal's hold period to end.

If PayPal holds your transfer and you need the money urgently, your only option is to use the money for something else in the meantime. You cannot cancel a transfer that is on hold, but you can contact PayPal support to ask whether they will release it early. They sometimes will if you can explain why you need it sooner.

What to do if your transfer does not arrive

First, check your PayPal account to see the status of the transfer. Log in, go to your activity or transaction history, and look for the transfer. PayPal will tell you whether it is pending, completed, or failed. If it shows as completed but the money is not in your bank account, contact your bank — the transfer may be pending on their end.

Banks sometimes take longer than PayPal's estimate to process incoming transfers, especially if the transfer arrived late in the day or over a weekend. Call your bank's customer service line and give them the transfer date and amount. They can tell you whether the transfer is in their queue and when it will post.

If PayPal shows the transfer as failed, the most common reasons are a wrong account number, a closed account, or a mismatch between the name on your PayPal account and the name on your bank account. PayPal will usually send you a message explaining why it failed. Fix the problem in your PayPal settings and try again.

Transferring to a debit card instead of a bank account

If you have a debit card linked to your PayPal account, you can transfer money to it instead of a bank account. This works similarly to a bank transfer: you go to your wallet, select "Transfer to Your Card," and choose your debit card. The money usually arrives within one to two business days, or when ready if you pay the when ready transfer fee.

Debit card transfers are useful if you want quick access to cash without waiting for a bank transfer. However, not all debit cards work with PayPal, and some banks charge a fee when PayPal deposits money into your card. Check with your card issuer before you set this up.

Frequently Asked Questions

Can I transfer money from PayPal to someone else's bank account?

No. PayPal transfers only go to a bank account or debit card linked to your own PayPal account. To send money to another person, use PayPal's "Send Money" feature, which transfers funds directly from your PayPal balance to theirs (if they have a PayPal account) or to their bank account (if you have their details and they have set up a transfer method).

Why does PayPal charge a fee for when ready transfers but not standard ones?

Standard transfers take one to two days because PayPal batches many transfers together and processes them in bulk, which is cheap. when ready transfers go out individually and when ready, which costs PayPal more in processing fees. They pass that cost to you as the 1.5% to 2% fee.

What if I transfer money but then change my mind?

If the transfer is still pending (not yet completed), you can cancel it in your PayPal activity. Once it shows as completed, the money has left PayPal and is on its way to your bank — you cannot cancel it. Contact your bank to see if they can reverse it, though they usually cannot once it has posted to your account.

Do I need to pay taxes on money I transfer from PayPal to my bank?

Transferring your own money from PayPal to your bank is not a taxable event. However, the money you earned (whether from sales, freelance work, or other sources) was already income when you received it in PayPal. You owe taxes on that income regardless of whether it stays in PayPal or moves to your bank. Keep records of what you earned and report it on your tax return.

How long does it take to link a new bank account?

The verification process takes three to five business days from when you enter your account information. PayPal deposits two small amounts into your account, and you have to confirm those amounts in your PayPal settings. Once you confirm, the account is linked and ready to use. You cannot transfer money until this is done.