The fastest way to transfer money from PayPal to your bank account
You can move money from PayPal to a linked 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 three 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 can transfer money, you must 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 account, which you then confirm in PayPal. This verification step typically takes one to two business days.
Key Takeaways
- Standard transfers from PayPal to your bank account are free and take one to three business days to arrive.
- when ready transfers cost a percentage of the amount you send (usually 1.5% to 2%) but arrive within minutes.
- You must link and verify your bank account in PayPal before you can transfer money, which requires confirming two small deposits PayPal makes to your account.
- The money you transfer must be in your PayPal balance; you cannot transfer funds directly from a credit card or PayPal credit line.
How to link your bank account to PayPal
Open PayPal on a web browser or the mobile app and go to your account settings. Look for the section labeled "Wallet" or "Banks and Cards" (the exact name varies by app version). Select "Link a Bank Account" and enter your bank's routing number, your account number, and the account type (checking or savings).
PayPal will then deposit two small amounts into your bank account within one to two business days. Check your bank statement for these deposits, which will appear as small charges from PayPal. Return to PayPal, go back to your linked accounts, and enter the two amounts you see in your bank statement. Once you confirm both amounts, your account is verified and ready for transfers.
If you already have a debit card linked to PayPal, you can sometimes skip this step — PayPal may allow you to transfer directly to the bank account associated with that card. Check your account settings to see if this option is available.
Standard transfers: free but slower
A standard transfer is the most common way to move money from PayPal to your bank. It costs nothing and takes one to three business days. The exact timing depends on your bank and whether the transfer is processed on a weekend or holiday.
To start a standard transfer, open PayPal, go to your wallet or account settings, and select "Transfer Money." Choose "Transfer to Your Bank" and enter the amount you want to send. Select your linked bank account from the dropdown menu, confirm the transfer is standard (not when ready), and complete the transaction. You will see a confirmation screen with an estimated arrival date.
Standard transfers usually arrive within one business day, but PayPal's terms allow up to three. If your transfer does not arrive within three business days, contact PayPal support through the Resolution Center in your account.
when ready transfers: fast but with a fee
If you need money in your bank account right away, PayPal offers when ready transfers. The money arrives within minutes, but PayPal charges a fee of 1.5% to 2% of the amount you transfer (the exact percentage varies by account type and region). 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 can see exactly how much you will pay. The money goes to the same linked bank account and appears in your bank's system within minutes, though your bank may take a few hours to display it in your account balance.
Not all PayPal accounts have access to when ready transfers. If you do not see this option, your account may not meet PayPal's requirements, which can include account age, transaction history, or account status. You can still use standard transfers at no cost.
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 directly to that card. This works similarly to a bank transfer but may be faster with some card issuers. The process is the same: go to "Transfer Money," select your debit card instead of a bank account, choose your transfer speed, and confirm.
Debit card transfers follow the same fee structure as bank transfers — standard transfers are free and when ready transfers cost 1.5% to 2%. The money may arrive faster with a debit card because some card networks process transfers more quickly than bank ACH transfers, but this varies by card issuer.
What to do if your transfer fails or takes too long
If a transfer does not arrive within the promised timeframe, first check that you entered the correct bank account number and routing number. A single digit wrong will cause the transfer to fail or go to the wrong account. PayPal will usually send you a notification if the transfer failed, and the money will return to your PayPal balance within a few business days.
If the transfer succeeded but your bank has not received it, contact your bank directly. Provide them with the transfer confirmation number from PayPal (visible in your transaction history) and the date you sent it. Your bank can trace the transfer and tell you where it is in their system.
If PayPal shows the transfer as complete but your bank says they never received it, open a case in PayPal's Resolution Center. Include the confirmation number, the date, the amount, and the bank account you sent it to. PayPal will investigate and either resend the transfer or refund the money to your PayPal balance.
Limits on how much you can transfer
PayPal sets limits on how much you can transfer in a single transaction and over a period of time. These limits vary based on your account age, verification status, and transaction history. New accounts typically have lower limits than established ones.
You can see your transfer limit by going to your account settings and looking for "Limits" or "Account Limits." If you need to transfer more than your current limit allows, you can request a limit increase through PayPal's website, though approval is not may provide. Some limits increase automatically as your account ages and you complete more transactions.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No, you can only transfer money from your PayPal balance to a bank account or debit card linked to your own PayPal account. To send money to someone else, use PayPal's "Send Money" feature, which transfers funds directly to their PayPal account or email address.
What if I don't have a bank account linked yet?
You must link and verify a bank account before you can transfer money out of PayPal. The verification process takes one to two business days. During this time, you can still receive money into your PayPal balance and spend it using PayPal's debit card or online checkout, but you cannot move it to a bank account.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank is not a taxable event — you are moving money you already earned or received. However, the original income that went into your PayPal account may be taxable depending on its source. If you earned the money through sales or services, you owe taxes on that income regardless of whether it sits in PayPal or your bank.
Why is my when ready transfer taking longer than a few minutes?
when ready transfers usually arrive within minutes, but your bank may take several hours to display the money in your account balance. The transfer is complete on PayPal's end, but your bank processes it on their own schedule. If more than a few hours have passed, contact your bank to confirm they received the transfer.
Can I cancel a transfer after I send it?
Standard transfers can sometimes be cancelled within a few hours of sending, before the money leaves PayPal's system. when ready transfers cannot be cancelled because the money is already in transit. Check your transaction history in PayPal — if a cancel option appears next to the transfer, you can still stop it. If not, the transfer is already processing and you will need to contact PayPal support if there is an error.