PayPal checks work like any other check, but they come from PayPal's bank account instead of your personal one

A PayPal check is a paper check issued by PayPal or its banking partner, usually when you withdraw money from your PayPal account. You cash it the same way you would cash any other check: deposit it at your bank, credit union, or check-cashing location. The check has a routing number and account number printed on it, and the funds come from PayPal's operating account, not from another user's wallet.

PayPal typically issues checks when you request a withdrawal to your bank account but something goes wrong with the electronic transfer, or when you specifically ask for a paper check instead of a direct deposit. The check will have your name on it and the amount you requested to withdraw.

Key Takeaways

  • PayPal checks are standard paper checks drawn on PayPal's bank account and can be cashed at any bank, credit union, or check-cashing service.
  • The check will arrive in the mail within 7 to 10 business days after PayPal processes your withdrawal request.
  • You can deposit the check into your own bank account or cash it immediately at a check-cashing location, though cashing services may charge a fee.
  • The check is only valid for 180 days from the date it was issued, so deposit or cash it before that window closes.

Where to cash a PayPal check

Your bank or credit union is the fastest and cheapest option. Walk in with the check and your ID, and the teller will deposit it into your account or cash it on the spot. Most banks process checks the same day or the next business day, and there is no fee if you have an account there.

If you do not have a bank account or prefer not to use it, check-cashing services will cash the check for you. Walmart, grocery stores, and dedicated check-cashing shops all offer this service. They will charge a fee — usually between $2 and $10 depending on the check amount and the location — and they may ask for ID and a thumbprint. Some require you to have a membership or account with them.

Credit unions often cash checks for non-members at a lower fee than commercial check-cashing services, so if you have access to one, that is worth trying first.

What information you need to cash the check

You will need a government-issued photo ID — a driver's license, passport, or state ID card. The name on the check must match the name on your ID. If it does not, the check-cashing location will refuse to cash it.

You do not need anything else. The check itself has all the routing and account information printed on it. Do not sign the back of the check until you are at the location where you are cashing or depositing it, and sign it in front of the teller or cashier.

How long the check takes to clear

If you deposit the check into your bank account, the funds are usually available within one to three business days. Your bank may place a hold on the first $225 for the first business day, depending on your account history and the bank's policies, but the full amount should be available by day three.

If you cash the check at a check-cashing service, you get the money immediately — you walk out with cash in hand. There is no waiting period.

The expiration date on PayPal checks

PayPal checks expire 180 days (about six months) from the date printed on the check. After that date, the check is no longer valid and PayPal will not honor it. If your check has expired, you will need to contact PayPal to request a replacement or ask for the funds to be transferred to your bank account instead.

Check the date on the check as soon as it arrives. If it is close to expiring, cash or deposit it right away.

What to do if the check bounces or is rejected

A PayPal check should not bounce — PayPal has the funds in its operating account and the check is backed by a major financial institution. If a bank or check-cashing location refuses to accept it, the problem is usually that the name on the check does not match your ID, the check is damaged or illegible, or the check has expired.

If the check is damaged, contact PayPal and ask for a replacement. If the name does not match your ID, you will need to bring a different form of ID that matches the name on the check, or contact PayPal to reissue the check in the correct name. If the check has expired, request a new one or ask PayPal to send the funds to your bank account electronically instead.

Alternatives to cashing a PayPal check

If you do not want to wait for a check to arrive or deal with cashing it, you can request that PayPal transfer the money directly to your bank account instead. This is faster — the transfer usually takes one to three business days — and there is no fee. You can set this up in your PayPal account settings under "Withdraw Funds."

You can also leave the money in your PayPal account and use it to make purchases, send money to other people, or pay bills through PayPal's bill-pay service. This avoids the need to cash the check altogether.

Frequently Asked Questions

Can I deposit a PayPal check into someone else's bank account?

No. The check is made out to you by name, and the bank will only deposit it into an account in your name. If you need someone else to have the money, cash the check and give them the cash, or transfer the funds to them through PayPal or your bank's money-transfer service.

What if I lost my PayPal check?

Contact PayPal immediately and report it lost. PayPal can cancel the check and issue a replacement. If someone else cashes a lost check in your name, you may be able to dispute the transaction with PayPal, but it is better to report it lost before that happens.

Do I have to pay taxes on a PayPal check?

That depends on where the money came from. If it is a refund from a purchase or a transfer from your own account, it is not taxable. If it is payment for goods or services you sold, it may be taxable income. PayPal will send you a tax form if you earned more than a certain amount in a year.

Can I mobile deposit a PayPal check?

Yes, most banks allow mobile deposit of PayPal checks through their app. Take a photo of the front and back of the check, follow the app's instructions, and the check will be deposited into your account. The funds usually appear within one to three business days.