How to Move Money From PayPal to Your Bank Account

PayPal lets you transfer money to a linked bank account in three ways: a standard transfer that takes one to two business days, an when ready transfer that costs a fee and arrives within minutes, or a withdrawal to a debit card

The method you choose depends on how quickly you need the money and whether you want to pay a fee. Standard transfers are free but slower. when ready transfers move money when ready but cost between 1.5% and 2% of the amount you send. A debit card withdrawal is free and fast if you have a PayPal debit card.

Before you can transfer money out of PayPal, you must link a bank account to your PayPal account and confirm that you own it. PayPal will deposit two small amounts into that account, and you'll need to enter those amounts back into PayPal to verify ownership. This step can take several business days.

Key Takeaways

• Standard transfers from PayPal to a linked bank account are free and take one to two business days to arrive.
• when ready transfers cost 1.5% to 2% of the amount transferred and arrive within minutes, but are only available if your account is in good standing.
• You must link and verify a bank account before you can transfer money, which involves confirming two small deposits PayPal sends to that account.
• PayPal debit card holders can withdraw money for free at ATMs or use the card to spend directly without transferring to a bank first.

How to link a bank account to PayPal

Log into your PayPal account on a computer or the PayPal app. Go to Settings (the gear icon), then select Wallet or Bank Accounts, depending on which version you're using. Click "Link a Bank Account" and enter your bank's routing number, your account number, and the account type (checking or savings).

PayPal will then send two small deposits to that account, usually within one to two business days. Check your bank statement for these deposits—they will appear as small amounts, often between $0.01 and $0.99 each. Go back to PayPal, find the linked account in your settings, and enter those two amounts to confirm you own the account. Once verified, you can transfer money out.

Standard transfers: free but slower

A standard transfer is the default option and costs nothing. Go to your PayPal Wallet, select "Transfer Money," then choose "Transfer to Your Bank." Enter the amount you want to send and confirm. The money will arrive in your bank account in one to two business days.

The exact timing depends on your bank and the day of the week you initiate the transfer. Transfers sent on a Friday or weekend may not arrive until the following Tuesday or Wednesday. If you need money faster, you can use an when ready transfer instead, though it will cost you a percentage of the amount.

when ready transfers: fast but with a fee

when ready transfers move money from PayPal to your bank account within minutes. The cost is 1.5% of the amount transferred if you're sending to a linked bank account, or up to 2% if you're using certain other methods. For example, transferring $100 would cost $1.50.

To use when ready transfer, go to your PayPal Wallet, select "Transfer Money," then choose "when ready Transfer to Your Bank." You'll see the fee displayed before you confirm. when ready transfers are only available if your PayPal account is in good standing—meaning you have no disputes, chargebacks, or violations on record. If your account has had problems, PayPal may restrict this option until the issues are resolved.

Using a PayPal debit card

If you have a PayPal debit card, you can withdraw money for free at any ATM that accepts Mastercard. You can also use the card to spend directly from your PayPal balance without transferring to a bank first. There is no fee for ATM withdrawals, though some ATM operators may charge their own fee.

To request a PayPal debit card, go to your account settings and look for the Debit Card option. PayPal will mail the card to your address, which typically takes five to seven business days. Once you receive it, you can set up it in the app and use it when ready.

What happens if your transfer fails

A transfer can fail if your bank account information is incorrect, if your bank rejects the deposit for any reason, or if PayPal suspects fraud on your account. If a transfer fails, PayPal will send you a notification explaining why. The money will stay in your PayPal account and you can try again.

If your bank keeps rejecting transfers, contact your bank directly to ask if they have restrictions on deposits from PayPal. Some banks flag PayPal transfers as unusual activity. You may need to call your bank and confirm that you want to receive deposits from PayPal before trying again. If the problem persists, you can contact PayPal's support team through the Resolution Center in your account.

Timing and limits on transfers

PayPal does not publish a daily or monthly limit on how much you can transfer to your bank account. However, your bank may have its own limits on how much money it will accept in a single deposit. If you're transferring a very large amount, contact your bank first to make sure they won't reject it.

Standard transfers process on business days only, so a transfer initiated on Friday evening may not arrive until Tuesday. when ready transfers process at any time, including weekends and holidays. If you need money on a weekend, when ready transfer is your only option, though you'll pay the fee.

Frequently Asked Questions

How long does it take to verify a bank account with PayPal?

PayPal sends two small deposits to your bank account, which usually arrive within one to two business days. Once you see them in your bank statement, you enter the amounts into PayPal to confirm ownership. The entire process typically takes three to five business days from start to finish.

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

No. PayPal transfers only go to a bank account registered in your own name. If you want to send money to someone else, you can use PayPal's "Send Money" feature to transfer directly to their PayPal account or email address, but you cannot send directly to their bank account.

What if I don't have a bank account to link to PayPal?

If you have a PayPal debit card, you can withdraw money at ATMs without linking a bank account. You can also keep money in your PayPal balance and spend it using the PayPal app or website. However, you cannot transfer to a bank account without linking one first.

Do I 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, if the money in your PayPal account came from selling goods or services, that income may be taxable depending on the amount and your location. Keep records of where the money came from in case you need to report it.

Can I cancel a transfer after I've started it?

For standard transfers, you can cancel within a few minutes of initiating it, before PayPal processes it. For when ready transfers, cancellation is not possible once the transfer has begun because the money arrives within minutes. Check your PayPal activity to see if a cancel option is still available.