What is PayPal?
PayPal is a popular payment platform with a website and mobile app that allows you to make payments for goods and services instantly through online money transfers. PayPal customers can create an account and connect it to their bank account, debit or credit card, or both.
How to transfer money from your bank to PayPal
Transferring money from your bank account to PayPal is easier than you might think. Simply follow these three easy steps.
1. Set up a PayPal account
You can download the PayPal app for free from Google Play and the App store. When you’ve got the app, open it and follow the on-screen instructions to set up an account. You’ll need an email address and password, and on some devices you can add biometric login for an extra layer of security.
Alternatively, you can register with PayPal online and use their website, but you may find it more convenient to use the dedicated app.
2. Confirm a bank account and link it to PayPal
Linking your bank account to PayPal allows you to make quick and easy transfers without needing to credit money to your PayPal account separately for each transaction. You can do this via the PayPal website or the PayPal app.
How to link a bank account to PayPal in the app
Linking a bank account to PayPal is straightforward - here’s what you need to do:
Go to your PayPal wallet
Add an account
Find your bank
You can link your bank account instantly by entering your online banking login details. PayPal can then immediately verify your account with your bank and you’re ready to go.
If you don’t want to enter your login details to confirm your bank, you can tap ‘Link your bank another way’. You can enter your bank account information here and PayPal will send you two small deposits within three business days to confirm your account. They will then debit these payments back when your account has been confirmed.
How to link a bank account to PayPal on the web
You can log in to your PayPal account via their website.
Go to your PayPal wallet
Add an account
Find your bank
You can link your bank account instantly by entering your online banking login details. If this option isn’t available, you can enter your bank details manually and click ‘Agree and Link’.
If you don’t want to enter your login details to confirm your bank, you can click ‘Link your bank another way’. You can enter your account information here and PayPal will send you two small deposits within three business days to confirm your account. They will then debit these payments back when your account has been confirmed.
3. Transfer money to your PayPal account
Like setup, you can transfer money from your bank to your PayPal account via the PayPal website or the PayPal app.
How to transfer money from a bank account to PayPal in the app
The app is available on Google Play and the App Store.
Go to 'Add money'
Select where you'd like to transfer money from
Enter the amount
Select your payment method and timeframe
How to transfer money from a bank account to PayPal on the web
You can log in to your PayPal account via their website.
Go to your PayPal wallet
Select where you'd like to transfer money from
Enter the amount
Select your payment method and timeframe
How long does it take to add funds to your PayPal account?
Transferring money from your bank account to PayPal can take 3-5 business days, but you can add funds to PayPal more quickly.
While bank transfers to PayPal can be quite slow, you can transfer money to PayPal quickly if you connect your PayPal account to your debit or credit card. Payments from here are debited from your account instantly, much like other debit card transactions.
Since bank transfers take 3-5 business days to be processed and verified, it takes a while for them to appear in your PayPal account. If you’re looking for a quick way of transferring money to PayPal, you may be better off connecting your PayPal account to your debit or credit card than connecting directly with your bank account.
How to make an instant payment with PayPal
Despite it taking several working days to transfer funds from your bank account to your PayPal account, it is possible to make an instant payment with PayPal. When making an online payment or signing up for a subscription, rather than entering your card details you can choose to pay via PayPal.
When you do this, the seller or merchant will be credited immediately, while your bank processes PayPal’s request for the money. To complete an instant transfer with PayPal, you’ll need to have linked your bank account to your PayPal account already using the steps listed above. PayPal will usually email you once the transaction is successfully completed.
What are the PayPal fees for adding money to my account?
There are no fees for transferring money from your bank account to your PayPal balance, and making local purchases through PayPal should also be free. However, charges can come into play when transferring money overseas using PayPal. If you’re looking to send money abroad, it might be cheaper to use international money transfer provider.
How to add cash to PayPal using the PayPal Debit Card
You’ll need to go to one of PayPal’s participating stores to add cash to your account with your debit card. Over 90,000 locations across the US participate in the PayPal cash transfer scheme, including Rite Aid, CVS Pharmacy, GameStop, Walmart, Dollar General, and Family Dollar.
When you’re at the store:
Go to your 'Wallet'
Select where you'd like to transfer money from
Choose a store
Show the barcode at the checkout
Does PayPal have a cash deposit limit?
The daily limit is $500, which is also the limit on each individual barcode. You can use up to three barcodes per day, but only up to the maximum total of $500. The maximum amount of cash deposits per month is $4,000.
The minimum deposit per barcode is typically $20.
How soon is cash available to use in my PayPal account?
The PayPal cash deposit process is very fast. Money is typically added to your PayPal balance within minutes of the transaction.
How to add cash to PayPal using the Cashback Mastercard
The PayPal Cashback Mastercard allows you to earn up to 3% cash back on transactions when you checkout with PayPal. You can redeem your cash back balance via your ‘Shopping’ dashboard, or you can apply it to your next eligible purchase.
Where can I use the PayPal Cashback Mastercard?
The PayPal Cashback Mastercard is accepted at the online stores where PayPal is accepted, and in some select stores in person using the PayPal QR code.
Is the PayPal Cashback Mastercard available outside the US?
No, you must reside in the US or its territories to apply for the PayPal Cashback Mastercard.
How to receive money from friends and family into your PayPal account
You can receive money through PayPal when someone sends a payment to your email address or mobile number. When this has happened, PayPal will send you a message letting you know that your account has received some money.
You can access this money via your PayPal homepage, and either:
Transfer it to your linked bank account, or
Keep it in your PayPal balance
How to transfer money from PayPal to a bank account
You can withdraw money from your PayPal account in one of two ways:
Instant transfer to your connected debit card or bank account
Standard transfer to your bank account
You can withdraw money from your PayPal account via either the website or the app.
How to withdraw money from your PayPal account via the app
Tap your PayPal balance
Tap ‘Transfer Money’
Follow the instructions
How to withdraw money from your PayPal account on the web
Go to your ‘Wallet’
Click ‘Transfer Money’
Click ‘Withdraw from PayPal to your bank account
Select ‘Instant (Free)’ or ‘Standard (Free)’
Follow the instructions
The Instant transfer to your bank account is quicker, typically taking just a few minutes to complete, up to a maximum of 30 minutes. The standard transfer is not quite as fast, typically completing in one working day. This also depends on your bank’s clearing process, and may take 3-5 business days.
Heads up
It’s important that the name on your PayPal account matches the name on your bank account exactly. For example, if your bank account name is J W Murphy, but your PayPal account name is John William Murphy, the transfer could fail. If your PayPal account name is slightly different, you should change it to make sure it matches the name on your bank account.
PayPal only supports transfers in the local currency, so if you withdraw money in a foreign currency, they’ll charge a conversion fee.
Some banks charge fees for processing electronic payments. You should check this before submitting a withdrawal request, as we’re not able to cancel a withdrawal once we’ve started processing it.
You can’t cancel a withdrawal request
How to transfer money from your bank account to someone else’s PayPal account
In order to send money to someone’s PayPal account, both parties will need to have PayPal accounts. You can’t transfer money from your bank account directly to someone else’s PayPal account.
To send money to someone else’s PayPal account, you can set up your own PayPal account and add money to your balance via the method shown above. When you have a PayPal balance, you can transfer money to someone else’s PayPal account by following these steps:
How to transfer money via the PayPal app
Tap $ Payments
Enter the recipient’s information: Name, @username, email address or mobile phone number
Enter the amount you’d like to transfer, choose the currency, add an optional note if you wish, and tap ‘Next’
Select your funding source, review the information, and tap ‘Send’
How to transfer money via the PayPal website
Go to ‘Send and Request’
Enter the recipient’s information: Name, @username, email address or mobile phone number, and click ‘Next’
Enter the amount you’d like to transfer, choose the currency, add an optional note if you wish, and tap ‘Continue’
If available, choose the payment type
Choose how you want to pay and click ‘Next’
Review the information and click ‘Send Payment Now’ when you’re happy
Sending money to PayPal - simple, but sometimes slow
PayPal is a very useful system for paying for goods and sending money to other PayPal users, but transferring money directly from your linked bank account to your PayPal balance can take some time. You can avoid these delays by transferring funds from your debit card, or adding cash using the PayPal Debit Card.
However, despite its clear usefulness, the heavy fees charged for international transfers make it a poorer choice for sending money overseas. You’ll find a better rate using a specialist money transfer provider.
We'd recommend choosing one of the following providers instead.