How to Send Money With PayPal: Step-by-Step Instructions

How PayPal transfers work and who can receive them

PayPal lets you send money to another person using their email address or phone number, or to a business using their PayPal.me link. The recipient gets the money in their PayPal account within minutes, though they may need to wait one to three business days to move it to their bank account. You can send money domestically (within the United States) or internationally, though international transfers have higher fees and take longer.

The person receiving your money needs a PayPal account, or they can create one free when they receive your transfer. You do not need to know their bank details — just their email or phone number. This makes PayPal transfers simpler than wire transfers or checks for casual payments between friends, family, or small vendors.

Key Takeaways

• You can send money through PayPal using someone's email address, phone number, or PayPal.me link, and they receive it in their PayPal account within minutes.
• Domestic transfers between friends and family are free, but business payments and international transfers charge a percentage fee.
• The recipient must have a PayPal account or create one free when they receive your transfer.
• Money arrives in the recipient's PayPal account when ready, but moving it to their bank account takes one to three business days.
• You can fund your transfer from your PayPal balance, linked bank account, debit card, or credit card.

Sending money to friends and family for free

If you are sending money to a friend or family member in the United States, PayPal charges no fee as long as you send it as a "friends and family" transfer. Log into your PayPal account, click "Send Money" at the top of the page, and enter the recipient's email address or phone number. Type the amount you want to send, then select "Friends and Family" as the transfer type.

PayPal will ask you to confirm the recipient's name and choose how to fund the transfer — from your PayPal balance, a linked bank account, a debit card, or a credit card. If you use your PayPal balance or a linked bank account, there is no fee. If you use a credit card or debit card, PayPal charges a small percentage fee even for friends and family transfers. After you review the details and click "Send," the money reaches the recipient's PayPal account when ready.

Friends and family transfers are meant for personal payments, not for buying goods or services. If you send money for a purchase and the recipient does not deliver, PayPal's buyer protection does not cover friends and family transfers, so you have limited recourse if something goes wrong.

Sending money to a business or for goods and services

When you pay a business, a freelancer, or someone selling you something, use the "Goods and Services" payment type instead of friends and family. This option costs more — PayPal charges the sender a percentage fee that varies but is typically around 2.2 percent plus $0.30 per transaction for domestic transfers. The recipient sees the fee, and you can choose whether to cover it or have the recipient pay it.

To send a goods and services payment, log into PayPal, click "Send Money," enter the recipient's email or phone number, and select "Goods and Services" as the payment type. You can add an invoice number or description of what you are paying for. After you confirm the amount and funding source, click "Send." The recipient gets the money in their account right away, and you have PayPal's buyer protection — if the goods do not arrive or the service is not completed as promised, you can file a dispute and potentially recover your money.

Using PayPal.me links to request or send money

A PayPal.me link is a personalized URL that makes it straightforward for others to send you money without needing your email address. You create your PayPal.me link once in your account settings, and it stays the same. You can share it on social media, in an email signature, or anywhere else. When someone clicks your link, they land on a page where they can enter an amount and send you money when ready.

You can also use someone else's PayPal.me link to send them money. If a vendor or friend gives you their PayPal.me link, click it, enter the amount, choose your funding source, and complete the transfer. This is faster than asking for their email address and typing it into PayPal's send form. PayPal.me links work for both friends and family transfers and goods and services payments, depending on what you select when you send.

Funding your transfer and understanding fees

When you send money through PayPal, you choose where the money comes from. Your options are your PayPal balance (money already in your account), a linked bank account, a debit card, or a credit card. The funding source affects whether you pay a fee.

For friends and family transfers within the United States, there is no fee if you use your PayPal balance or a linked bank account. If you use a debit or credit card, PayPal charges a percentage fee. For goods and services payments, PayPal charges a fee regardless of your funding source — typically 2.2 percent plus $0.30 for domestic transfers. International transfers cost more: PayPal charges a percentage fee (usually around 4.7 percent) plus a fixed amount that depends on the country you are sending to.

Before you send, PayPal shows you the exact fee and the total amount the recipient will receive. If you are unsure whether you have a linked bank account set up, log into your PayPal account, click "Wallet," and look for "Linked Bank Accounts." You can add one there if you need to.

What happens after you send money

Once you click "Send," PayPal processes the transfer when ready and the money appears in the recipient's PayPal account within minutes. The recipient gets a notification by email or text (depending on their account settings) that they received money. They can see the transfer in their PayPal activity right away.

If the recipient wants to move the money to their own bank account, they need to go to their PayPal wallet, click "Transfer Money," and select "Transfer to Your Bank." This step takes one to three business days, depending on their bank. Some banks are faster than others. If the recipient is new to PayPal, they may need to link a bank account first before they can transfer money out.

You can see the status of your transfer in your PayPal activity. Click the transaction to see details like the date sent, the amount, the recipient's name, and whether it was a friends and family or goods and services transfer. If you need to cancel a transfer, you can do so only if the recipient has not claimed it yet — once they accept it, the money is theirs.

Common mistakes and how to avoid them

The most common mistake is sending money as friends and family when you are actually paying for something. Once you send a friends and family transfer, you have almost no protection if the recipient does not deliver goods or complete a service. If you are paying for anything — even from someone you know — use the goods and services option instead, even though it costs more.

Another mistake is sending money to the wrong email address or phone number. PayPal does not verify that the address belongs to the person you think it does. If you type a digit wrong, your money goes to someone else's account. Always double-check the recipient's contact information before you click "Send." If you do send to the wrong person and they have not claimed it yet, you can cancel the transfer from your activity page.

A third mistake is not realizing that credit card funding comes with a fee. If you want to avoid fees on a friends and family transfer, use your PayPal balance or a linked bank account. Debit cards and credit cards both trigger a fee, even for personal transfers to friends.

Frequently Asked Questions

Can I send money to someone who does not have a PayPal account?

Yes. When you send money to an email address or phone number that is not connected to a PayPal account, PayPal sends the recipient a notification asking them to create an account or claim the money. They have 30 days to claim it. If they do not, the money returns to your account. Once they create an account and claim the transfer, the money is theirs.

What is the difference between friends and family and goods and services?

Friends and family transfers are free (if you use PayPal balance or a bank account) but have no buyer protection. Goods and services transfers charge a fee but give you PayPal's protection — you can dispute the transaction if the seller does not deliver. Use friends and family only for personal payments with people you trust.

How long does it take for money to reach someone's bank account?

Money reaches a PayPal account within minutes, but moving it from PayPal to a bank account takes one to three business days. The exact time depends on the recipient's bank. Weekends and holidays can add extra time. Some banks offer faster transfers for an additional fee.

Can I send money internationally with PayPal?

Yes, but international transfers cost more and take longer. PayPal charges a percentage fee (usually around 4.7 percent) plus a fixed amount based on the country you are sending to. The recipient's bank may also charge a fee. Money typically arrives within one to three business days, though some countries take longer.

What do I do if I sent money to the wrong person?

Go to your PayPal activity, find the transaction, and click it. If the recipient has not claimed the money yet, you can cancel the transfer and it returns to your account. If they have already claimed it, you cannot cancel it. Contact PayPal's support team to explain the mistake — they may be able to help, but there is no may provide they can recover the money.