PayPal is often used as an alternative to the usual bank accounts we open in our local banks and other financial institutions. PayPal has many advantages because it does not require you to have a minimum amount deposited on your PayPal account.
Many PayPal users often need to transfer money from their Paypal account to bank account. You can do this by:
- Linking your bank account to your PayPal account
- Transferring through the PayPal app
We’ll walk you through each of these methods. But first, we’ll go over a brief overview of PayPal accounts.
Perks of using your PayPal account
PayPal allows people worldwide to send and receive money from each other in shorter periods, sometimes even sending and receiving money in real-time.
Also, most workers, especially those working from home or freelancing, prefer having PayPal accounts as a regular mode of payment for their goods and services. This is because of its low fees compared to transfer fees charged by local banks over simple transactions.
PayPal acts as the usual bank account, but it is much more accessible and easier to maintain. You can also use PayPal to pay for goods and services you bought online, such as Amazon or eBay. You can also track your money sent and received in real-time using their mobile app and website version.
Downside: It can be confusing for some people
For some people, all the technical features of PayPal make their heads spin in confusion. Some worry about the safety of their money. While others prefer to use cash in conjunction with PayPal, so they need to withdraw their funds from their PayPal account directly to their local bank account. That way, they can withdraw it through ATMs and have cash readily accessible to them.
This article answers all your questions about transferring your money from PayPal to your designated bank account.
How to transfer money from PayPal to your bank account
1. Link your bank account to your PayPal account
After creating a PayPal account, you must link it to your local bank account. This allows you to withdraw your funds effortlessly and gives you cold cash whenever you need it.
Linking your PayPal and Canadian bank accounts will help you optimize your client and vendor transactions. PayPal has an online form for adding a Canadian bank account. It guides you through finding and identifying the three numeric codes required to complete the form: the bank transit number, the financial institution, and the account numbers.
Unlike American banks, which use a 9-digit routing number, Canadian banks utilize a 5-digit bank transit number. This bank transit number appears on printed cheques with the magnetic ink character recognition, or MICR, line. PayPal includes a confirmation stage in which two tiny amounts are deposited into your bank account.
Types of fund transfers to your bank account
There are two types of fund transfers available from PayPal to your bank account. These are the standard transfers and instant transfers.
Standard transfer to your local bank account
This is the most common type of fund transfer available to most PayPal users. This type is free, and it only takes 3-5 business days, depending on how your bank’s clearing process works. Therefore, you should transfer on weekdays rather than wait on weekends.
First, you have to click Transfer Money below your PayPal balance when you access it on your computer. Then click transfer to your bank, then select your bank and click Next. Input the amount of money you’re transferring, then click Next. Lastly, review the details, and finally, click transfer (amount) Now.
Instant transfer to your regular debit card
This type of transfer usually charges a fee, 2.9% of the total amount, and a fixed charge of 0.30 Canadian dollars. You can expect the funds to be transferred to your account in 30 minutes.
First, you have to access your PayPal account to your desktop and click Transfer Money below your PayPal balance. Then, select transfer to your bank.
You can see your debit card under the “Instant” section, then click Next. You have to enter the amount you are transferring, then click Next. Lastly, review the details and click transfer (amount of money) Now.
2. Transferring through the PayPal app
PayPal also allows you to transfer funds to your local bank account through the PayPal mobile app. All you have to do is tap Manage Balance, then select an amount and a destination account, and you’re all set.
Things to know before transferring money from PayPal to a Bank in Canada
There are some things you have to know before transferring funds to your local bank account. For one, the minimum you can withdraw is CA$15.
Otherwise, you cannot withdraw your funds. Some banks may charge you a transfer fee, so it is best to contact your bank for more information regarding this.
Lastly, all transfers are subject to review, which means transactions can be delayed or even canceled if PayPal detects an issue.