As one of the largest digital wallet and payment processing companies worldwide, PayPal enables fast and secure money transfers across over 200 countries and regions. With over 400 million active user accounts, PayPal has become a ubiquitous payment method for online purchases and person-to-person transactions.
However, you may be wondering what to do once you‘ve received funds into your PayPal account. How do you access that money and move it into your regular bank account? The process is actually straightforward – only requiring three simple steps detailed in this guide.
Why Link Your Bank Account to PayPal
Before we dive into the specifics, it‘s important to understand the benefits of connecting your bank account to your PayPal account:
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Enables withdrawals – Linking your bank account allows you to seamlessly shift money from your PayPal balance into your bank account. Without a linked bank account, you cannot withdraw funds.
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Increases account limits – Confirming your bank account removes certain PayPal account limitations, enabling higher sending/receiving volumes and limits.
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Provides account verification – By linking your bank details, PayPal can verify account ownership for security and fraud prevention.
For small business owners and freelance professionals earning revenue through PayPal, having a linked bank account is crucial for smoothly accessing your profits. Even for personal use, linking provides flexibility in how you can spend your PayPal money.
Now let‘s get into the step-by-step process…
Step 1: Verify Your Bank Account with PayPal
In order to withdraw funds from PayPal to your bank account, you first need to link and confirm your bank account details within your PayPal account profile. PayPal offers two pathways for verification:
Instant Online Verification
The fastest method is through PayPal‘s instant verification system, which securely connects with participating banks to validate your account instantly.
- To use this method:
- Login to your PayPal account and go to "Wallet"
- Select "Link a Bank"
- Search and select your bank
- Enter your online banking credentials when prompted
Once submitted, there will be an instant confirmation that your bank account has been successfully linked to your PayPal profile. It‘s super quick and convenient for supported financial institutions.
Advantages:
- Seamless and near-instant process
- Enhanced security using bank‘s authentication
- No waiting for test deposits
Manual Account Verification
If your bank is not supported by instant online verification, you will need to manually provide your account details for confirmation.
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To verify manually:
- Login to PayPal account > Click "Wallet" > Select "Link a Bank"
- When prompted that your bank cannot be instantly verified online, choose to manually link your bank account
- Enter your routing and account numbers
- PayPal will make two small test deposits into your account
- Check your bank statement for the exact deposit amounts
- Enter the deposit amounts into PayPal to confirm account ownership
It will take 2-3 business days for the test deposits to appear in your bank account before you can complete the confirmation process. This snail mail approach is more time-consuming but necessary for many regional banks.
Advantages:
- Works universally for any bank account and globally
- Test deposits confirm legitimate account access and ownership
Key Tips:
- Account holder names must fully match between PayPal and your bank
- List your legal first and last name on both accounts
- Notify PayPal of any name discrepancies
With either verification method complete, your bank account will show as confirmed within your PayPal profile. Now you can proceed to Step 2…
Step 2: Ensure Your Currency Denominations Match
Before you initiate a money transfer out of PayPal, double check that your PayPal balance currency matches the currency used by your bank account.
For example, if a client paid you $500 USD into your PayPal wallet, ensure the bank account you will transfer those funds to also uses $USD as its primary currency.
If there is no currency match, you have two options:
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Convert currencies – Use PayPal‘s tools to convert your balance into your bank account‘s currency prior to transfer. However, be aware PayPal applies conversion fees and offers poorer exchange rates compared to banks or currency exchanges.
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Use multi-currency banks – Some globally-focused banks provide multi-currency account options. You may be able to link a sub-account denominated in the currency sent by your client. Transfer into that matched currency account instead.
Check for currency matches every time prior to initiating your money transfers. Mismatches can cause transfers to fail or include unintended conversion fees.
Now the accounts are ready…let‘s move that money!
Step 3: Initiate the Money Transfer from PayPal to Your Bank
The final step is smooth sailing – simply log into your PayPal account and request your withdrawal transfer:
- Login to your PayPal account dashboard
- Click on "Transfer Money" near your account balance
- Select "Transfer to your bank account"
- Enter the amount you wish to transfer
- Click "Transfer Money Now" to confirm
And you‘re all done! PayPal will immediately process the payment to your linked bank account.
PayPal does not charge any fees for standard bank account transfers. However, there are small fees for instant debit card or check transfers.
Transfer Timelines
While the payments are initiated instantly when you submit the transfer request, it does take time for the money to reach your bank account:
- USA: Arrives in 1-3 business days on average
- Canada: Transfers of $15+ CAD arrive within 3-5 days
- UK/Europe: Expect 3-7 working days for GBP/EUR transfers
- Other countries: Up to 5 business days in most regions
For most geographies, it will take 2-5 business days for PayPal transfers to post in your bank account – slightly longer than direct bank wires but much faster compared to paper checks.
Weekends and holidays do not count towards transfer timelines. If facing unusually long delays, you can contact PayPal support for assistance tracking funds.
Other Money Transfer Options
Beyond standard bank account transfers, PayPal offers a couple convenient alternatives:
- Instant transfers to Visa/Mastercard debit cards in 30 minutes or less
- Paper checks mailed to your address for a small fee
However, these options have higher fees applied per transaction. For debit card transfers, you‘ll pay 1.75% per transaction. For a $100 transfer, that‘s $1.75 in fees.
Paper checks cost a flat $1.50 per check mailed to you via postal service. It‘s cheaper but much slower than electronic transfers.
Managing Transfers for Business Accounts
If you have a PayPal Business Account, you can conveniently track all your transfers directly in your PayPal dashboard:
The activity ledger shows pending as well as completed transfers along with any applicable fees paid. This helps you monitor cashflow and reconcile business finances.
For merchants and freelancers managing payroll or contractor payouts via PayPal, batch transfers are also available. You can seamlessly select multiple recipient accounts to pay out in one bulk transfer.
PayPal Bank Transfers: What‘s the Verdict?
Linking your bank account and shifting funds out of PayPal is straightforward. By following our three simple steps, you can liquidate your PayPal balance into your everyday bank account for easy access to your money in as little as 1-3 business days.
PayPal‘s pioneer status in digital payments gives it global reach that outpaces many financial institutions. By mastering money movements between your PayPal and bank, you can participate in convenient global commerce while still using your trusted bank‘s services. Add the option of quick debit card transfers, and there‘s almost no reason to ever store large cash balances within PayPal itself.
As PayPal continues expanding its partnerships and developing improved APIs with banks worldwide, the future may even allow instantaneous 24/7 real-time transfers at some point. But for now, this simple and free bank transfer functionality gets the job done!
