Transferring funds from your PayPal account to your bank is a straightforward process, simpler than you might think. Whether you prefer using your computer or your mobile device, PayPal offers convenient methods to move your money. You can easily initiate a transfer online through their website or directly via the PayPal mobile app. While both options are user-friendly, using the app often provides a quicker route to accessing your funds.
It’s worth noting that while PayPal generally doesn’t charge fees for transfers to your bank account, some banks might impose charges. Additionally, if you’re transferring money internationally, currency conversion fees will apply. For international transfers, services like Wise can be a cost-effective alternative, often offering better exchange rates and lower fees compared to traditional PayPal international transfers.
💡 Consider using Wise for international transfers to potentially save on fees and get better exchange rates.
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Step-by-Step Guide: Transferring Money from PayPal to Bank Online
If you’re accessing PayPal through your web browser, transferring money to your bank account involves a simple two-step process. First, you’ll need to ensure your bank account is linked to your PayPal account. If it’s already linked, you can jump straight to the transfer process.
Step 1: Linking Your Bank Account to Your PayPal Account
If you haven’t linked your bank account to your PayPal account yet, here’s how to do it:¹
- Navigate to your PayPal Wallet.
- Click on the option to ‘Add a card or bank account’.
- Select ‘Add a bank account’.
- Enter your bank’s sort code and your account number.
- Review the entered information, and click ‘Agree and add’ to confirm.
Step 2: Initiating the Transfer from PayPal to Your Bank Account
Once your bank account is linked, follow these steps to transfer your funds:²
- Go to your PayPal Wallet.
- Click on ‘Transfer Money’.
- Choose the ‘Transfer to your Bank’ option.
- Select the bank account you wish to transfer to and click ‘Continue’.
- Enter the amount you want to transfer and click ‘Next’.
- Review all details to ensure they are correct, then click ‘Transfer Now’ to complete the process.
How to Transfer PayPal Money to Bank Using the PayPal App
The PayPal app provides an even more streamlined method for transferring your funds to your bank account. The process is designed to be quick and efficient, allowing you to make transfers in just a few taps.
- Open the PayPal app and tap on your PayPal balance displayed on the home screen.
- Tap the ‘Withdraw Money’ option.
- Follow the on-screen prompts to select your linked bank account and enter the transfer amount.
Understanding the Transfer Time: How Long Does a PayPal to Bank Transfer Take?
Typically, a standard transfer from PayPal to your bank account takes approximately one business day to complete.³ However, it’s important to be aware that processing times can vary depending on the bank. In some instances, it might take up to five business days for the funds to appear in your account. So, if you don’t see the transferred amount after the first day, there’s usually no need to worry immediately.
In cases where there’s an issue with the transfer, it can take up to a week for the bank to notify PayPal. If a transfer fails, PayPal will return the money to your PayPal account balance.
Instant Transfers: Getting Your PayPal Money to Your Bank Faster
For those needing quicker access to their funds, PayPal offers an Instant Transfer option. This service allows you to transfer money to your eligible bank account or debit card within minutes. However, this expedited service comes with a fee of 1.50% of the transfer amount, with a maximum fee capped at $15.⁴
Instant Transfer is available for transfers to accounts at these banks:
- Bank of America
- BNY Mellon
- BB&T (now Truist)
- Citibank
- JPMorgan Chase
- Keybank
- PNC
- Suntrust (now Truist)
- Wells Fargo
If you require even faster international transfers, consider using Wise. Wise often provides faster payment methods for many currency routes, including options like credit card, Apple Pay, or balance payments, which can be quicker than traditional bank transfers or SWIFT. Wise aims to make most transfers instant.
Troubleshooting: Why You Might Be Unable to Transfer PayPal Funds to Your Bank
Encountering issues when trying to transfer money from PayPal to your bank can be frustrating. Here are some common reasons why you might be facing difficulties:⁵
Unusual Account Activity Detected by PayPal
PayPal’s security systems may flag unusual activity on your account, potentially halting transfers. To resolve this, you’ll need to verify your identity with PayPal. This security check might involve responding to a text message, answering a phone call, or answering your security questions.
Ineligible Bank Account or Debit Card for Instant Transfer
Instant Transfer is not available for all banks and debit cards. If your bank isn’t on PayPal’s list of eligible institutions, you won’t be able to use the instant transfer feature. You would need to use a standard transfer or consider switching to an eligible bank if instant transfers are a frequent need.
Mismatched Bank Information
If the information you entered for your bank account doesn’t precisely match what your bank has on file, the transfer may fail. Double-check your bank account details, including account number and routing number, and correct any discrepancies.
Limitations on Your PayPal Account
PayPal may place limitations on your account for various reasons. If your account is limited, you’ll need to visit the Resolution Center within your PayPal account. This section will provide details on any missing information or actions required to remove the limitation and restore full account functionality, including transfers.
Understanding PayPal to Bank Transfer Fees
While PayPal doesn’t typically charge a direct fee for standard transfers from PayPal to your bank account, it’s important to be aware of potential fees that could apply depending on the specifics of your transaction. These fees can include electronic fund transfer fees, withdrawal/transfer fees in certain situations, and currency conversion fees for international transfers.
Electronic Fund Transfer (EFT) Fees
Some banks may impose an electronic fund transfer fee for receiving transfers from platforms like PayPal. To determine if your bank charges such fees, it’s best to contact your bank directly and inquire about their policies on incoming electronic transfers.
Withdrawal or Transfer Fees
For personal PayPal accounts in certain regions, a fee might apply when withdrawing or transferring money to a bank account. This fee is sometimes around 1.5% of the transferred amount. Additionally, if you are transferring funds in a currency different from your bank account’s currency, a currency conversion fee will also be applied.⁶ Always review the fee details before confirming your transfer.
Currency Conversion Fees
When you transfer money to a bank account in a different currency, PayPal will apply a currency conversion fee. This fee is calculated based on the sender’s location, the currency being received, and PayPal’s currency conversion rate.
For international transactions paid from your PayPal balance or bank account, you’ll typically encounter a percentage-based fee, around 5% (up to a maximum of $4.99). If you pay using a card, this fee might be around 5% + 2.99%. On top of these, PayPal’s currency conversion fee, which ranges from 3-4% (or another amount disclosed during the transaction), is applied above the base exchange rate when converting the received currency.⁶
To simplify understanding these fees, Wise provides a helpful PayPal Fees Calculator to estimate your potential costs.
Save on International Transfers: Consider Wise
When it comes to international money transfers, PayPal’s fees and exchange rates can add up. Wise offers a transparent and often more cost-effective alternative for sending money internationally.
With Wise, you typically pay only a small, transparent fee, and you often benefit from the mid-market exchange rate. To see how much you could save, you can compare PayPal international transfer fees and exchange rates with Wise and make a more informed decision for your international money transfers.
Explore Wise for international transfers
Sources:
Sources checked 26 February 2021
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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
