PayPal transfers work differently depending on whether you're sending to a bank account or another PayPal user

PayPal lets you move money in two main ways: to someone else's PayPal account (instant, usually free) or to a U.S. bank account (takes one to three business days, may have a fee). If you're coming from wire transfer research, PayPal is faster and cheaper for small amounts, but it's not a wire in the traditional sense — it's a digital payment network. A wire transfer moves money directly between banks through the Federal Reserve or SWIFT system. PayPal moves money through its own platform, then deposits it into a bank account on the receiving end.

The person receiving your money needs either a PayPal account or a bank account in their name. You'll need a PayPal account with a verified payment method — a bank account, debit card, or credit card linked to it.

Key Takeaways

  • Sending to another PayPal user is free and instant, but sending to a bank account costs $0.25 to $2.00 depending on the amount and takes one to three business days.
  • You must link a bank account, debit card, or credit card to your PayPal account before you can send money.
  • The recipient needs either a PayPal account or a U.S. bank account in their own name; you cannot send to someone else's bank account without their permission.
  • PayPal holds some transfers for review, especially the first time you send to a new recipient or for large amounts, which can add one to two business days.

Linking a payment method to your PayPal account

Before you send money, PayPal needs to know where the money is coming from. Log into your PayPal account and go to the Wallet section. Click "Link a card or bank" and enter your debit card, credit card, or bank account details. If you're linking a bank account, PayPal will make two small deposits (usually under $1 each) to verify you own it — you'll need to confirm those amounts in your bank statement within a few days.

Once linked, you can choose which payment method PayPal uses when you send money. Most people link a bank account because it has no fees and PayPal doesn't charge interest. Credit cards work but PayPal may charge you a fee for using one.

Sending money to another PayPal user

Click "Send Money" from your PayPal home page. Enter the recipient's email address or phone number associated with their PayPal account. Type the amount and add a note if you want (useful for rent, loan repayment, or splitting a bill). Choose "Friends and Family" if you're sending a personal payment, or "Goods and Services" if you're paying for something — this matters for dispute resolution later.

Review the details and click "Send." The money arrives in their PayPal account instantly. They can keep it there, transfer it to their own bank account, or use it to pay someone else. There is no fee for sending to another PayPal user in the United States.

Sending money to a U.S. bank account

Click "Send Money" and select "Send to a bank account" instead of entering an email. You'll need the recipient's full name, routing number, and account number. You can find these on a check (routing number is the first set of numbers on the left, account number follows it) or by asking the recipient to log into their bank's website.

PayPal charges $0.25 for transfers under $10, $0.75 for $10 to $200, and $2.00 for over $200. The money takes one to three business days to arrive. PayPal may hold the transfer for review if it's your first time sending to that account or if the amount is unusually large — this can add one to two business days, and PayPal will email you if it happens.

What happens if PayPal holds your transfer

PayPal reviews transfers to reduce fraud. If your transfer is held, you'll see a message in your account saying it's under review. You can't cancel it during this time. The hold usually lasts 24 hours but can stretch to a few days. PayPal will email you when the review is complete.

Holds are more common if you're new to PayPal, sending a large amount for the first time, sending to a new recipient, or if there's a mismatch between the name on your PayPal account and your payment method. If you're sending regularly, holds become less frequent.

Sending money internationally

PayPal can send money to bank accounts in over 200 countries, but fees and timing vary widely. International transfers typically cost $4.99 to $7.99 and take three to five business days. The recipient's bank may also charge a fee to receive the money.

Some countries have restrictions on which banks PayPal can send to, and exchange rates apply if you're converting currency. Before sending internationally, check PayPal's website for the specific country — it will show you the fee, timing, and any restrictions. For large international transfers, a traditional wire through your bank may be cheaper or faster.

Canceling or disputing a transfer

If you sent money to the wrong person or changed your mind, you have limited options. If the transfer hasn't been claimed yet (usually only for transfers to a PayPal account), you can cancel it from your transaction history. Once it's been claimed or deposited into a bank account, you cannot cancel it directly.

Your only recourse is to contact the recipient and ask them to send the money back, or to file a dispute through PayPal. Disputes are harder to win if you sent the money intentionally, even if you regret it. If you believe fraud occurred — someone used your account without permission — report it to PayPal immediately.

Frequently Asked Questions

Can I send money from PayPal to someone who doesn't have a PayPal account?

Yes, but only to a U.S. bank account. You'll need their routing number and account number. They don't need to do anything — the money deposits directly into their bank account, and PayPal charges $0.25 to $2.00 depending on the amount.

How long does it take to send money to a bank account?

One to three business days is standard. Weekends and bank holidays don't count as business days. If PayPal holds the transfer for review, add one to two more days. You'll see the expected arrival date when you send the money.

What's the difference between "Friends and Family" and "Goods and Services"?

"Friends and Family" is for personal payments with no buyer or seller protection. "Goods and Services" is for purchases and includes dispute resolution if something goes wrong. Use "Goods and Services" if you're paying for something tangible or a service.

Is PayPal safer than a wire transfer?

Both are reasonably safe if you send to the right person. PayPal is easier to dispute if fraud occurs, but a wire transfer is harder to reverse once sent. For small personal payments, PayPal is simpler. For large business transfers, a wire through your bank may offer more protection and documentation.

Can I send money from a credit card through PayPal?

Yes, but PayPal charges you a fee — usually 2.2% of the amount plus $0.30 for domestic transfers. Linking a bank account or debit card has no fee, so most people use those instead.