How to Move Money From PayPal to Your Bank Account

The fastest way to transfer PayPal money to your bank

You can move money from PayPal to your bank account in one to three business days using PayPal's standard transfer feature. Log into PayPal on a computer or the mobile app, go to your Wallet, select your bank account, and choose how much to transfer. PayPal will deduct the money from your PayPal balance and deposit it into the bank account you've linked. There is no fee for standard transfers, though PayPal also offers an when ready transfer option that costs 1.75% of the amount you're moving.

The bank account you transfer to must be in your own name and already linked to your PayPal account. If you haven't linked a bank account yet, you'll need to add one before you can transfer money out. The linking process takes a few minutes and requires your routing number and account number, which you can find on a check or in your bank's online portal.

Key Takeaways

• Standard transfers from PayPal to your bank account are free and take one to three business days.
• You must link your bank account to PayPal first, using your routing number and account number from a check or your bank's website.
• when ready transfers are available for 1.75% of the amount transferred and arrive within 30 minutes on most business days.
• PayPal holds new bank accounts for up to 21 days before allowing transfers, to verify the account is real and in your name.
• If a transfer fails, PayPal will return the money to your PayPal balance within one to two business days.

How to link your bank account to PayPal

Before you can transfer money out, PayPal needs to confirm that the bank account belongs to you. On the PayPal website, go to Settings, then Wallet, then select "Link a bank account." Enter your routing number and account number. You can find both on a check, or log into your bank's website and look for account details or account information.

After you enter your account information, PayPal will make two small deposits into your account — usually within one to two business days. These deposits are typically less than $1 each and will appear as "PayPal" in your bank statement. Once you see them, go back to PayPal and confirm the amounts. This verification step proves the account is yours and is active.

New bank accounts are held in a pending state for up to 21 days after verification. During this time, you cannot transfer money out. This waiting period is a security measure. After 21 days, your account will be fully linked and you can transfer whenever you want.

Standard transfer vs. when ready transfer

PayPal offers two ways to move money to your bank. Standard transfer is free and takes one to three business days. The exact timing depends on your bank — some process deposits faster than others, and weekends and holidays add extra days. If you transfer on a Friday evening, for example, the money may not arrive until Tuesday or Wednesday.

when ready transfer costs 1.75% of the amount you transfer and arrives within 30 minutes on most business days. If you transfer $100, you pay $1.75 and receive $98.25 in your bank account. when ready transfers are not available on weekends or after 11:59 p.m. Eastern Time on weekdays. If you try to transfer after hours, PayPal will process it the next business day instead.

when ready transfer is useful if you need cash quickly, but the fee adds up if you transfer often. For most situations, standard transfer is the better choice because it costs nothing and only requires a few extra days of waiting.

Step-by-step: completing a standard transfer

1. Log into PayPal on your computer or open the PayPal app on your phone.
2. Tap or click "Wallet" (on the app, this may be labeled "Balance" or appear as a money icon).
3. Select "Transfer money" or "Move money."
4. Choose "Transfer to your bank."
5. Select the bank account you want to transfer to from the dropdown list.
6. Enter the amount you want to transfer.
7. Review the details and confirm that the transfer is free and will take one to three business days.
8. Click or tap "Transfer now."
9. PayPal will show a confirmation number. Write it down or take a screenshot.

Once you confirm, the money leaves your PayPal balance when ready, but it will not appear in your bank account for one to three business days. You can check the status of your transfer by going to your PayPal Activity or Transaction History. If you see a status of "Pending," the transfer is on its way.

What to do if your transfer fails or gets stuck

A transfer can fail for several reasons: the bank account information is wrong, the account has been closed, or PayPal detected unusual activity and blocked it for security. If your transfer fails, PayPal will send you an email explaining why. The money will return to your PayPal balance within one to two business days.

If the email doesn't explain the problem clearly, or if your transfer has been pending for more than three business days, contact PayPal directly. Go to the Resolution Center in your account, select the failed transfer, and choose "Report a problem." PayPal's support team will investigate and either complete the transfer or tell you what information needs to be corrected.

Common reasons transfers get stuck include a mismatch between the name on your PayPal account and the name on your bank account, or a bank account that is not in your own name. PayPal requires the account holder's name to match exactly. If you've recently changed your legal name or your bank account is under a different name, you may need to update your PayPal profile or link a different bank account.

Limits on how much you can transfer

PayPal does not publish a single transfer limit that applies to everyone. Limits depend on your account history, how long you've been a PayPal user, and whether you've had problems in the past. New accounts typically have lower limits than established ones. Your limit will increase over time as you use PayPal without issues.

To find your transfer limit, log into PayPal, go to Settings, then Wallet, and look for "Transfer limits" or "Limits and holds." This page will show you how much you can transfer in a single transaction and how much you can transfer in a rolling 24-hour or 30-day period, depending on your account status.

If you need to transfer more than your limit allows, you can split the transfer into multiple transactions spread across different days. For example, if your limit is $5,000 per day, you can transfer $5,000 today and $5,000 tomorrow. Each transfer will follow the same one- to three-day timeline.

Frequently Asked Questions

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

No. PayPal only allows transfers to a bank account that is registered in your own name. If you need to send money to someone else, use PayPal's "Send money" or "Pay friends and family" feature instead, which lets you send directly to their PayPal account or email address.

Why is my bank account showing as unverified?

New bank accounts must be verified with two small deposits before you can transfer money out. If your account is still pending, check your bank statement for two deposits labeled "PayPal" and confirm the amounts in your PayPal Wallet. If you don't see the deposits after two business days, contact your bank to make sure they haven't filtered them as spam.

Do I have 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 received in PayPal in the first place may be taxable depending on where it came from. If you earned it through self-employment or sales, you owe income tax on it. PayPal will send you a tax form if your transactions meet certain thresholds.

What happens if I transfer money but then dispute the transaction?

Once money leaves PayPal and reaches your bank account, PayPal cannot reverse it. If you need to return the money, you must initiate a transfer back to PayPal from your bank account. This is why it's important to double-check the amount and the receiving account before you confirm a transfer.

Can I set up automatic transfers from PayPal to my bank?

PayPal does not offer automatic recurring transfers. You must manually initiate each transfer through your PayPal account. However, you can set up a reminder on your phone or calendar to transfer money on a regular schedule if that helps you stay organized.