PayPal vs bank transfers in the UK: which is cheaper?
Check out our comparison of PayPal vs. bank transfers in the UK, including fees, transfer times, limits, exchange rates and more.
How to withdraw money from PayPal (2022)
If you’ve got money in your PayPal account, you’ll need to know how to withdraw the balance. The good news is that it should be relatively quick and easy, provided your PayPal account is all set up.
In this guide, we’ll walk you through everything you need to know on how to withdraw money from PayPal. This includes how to use Wise to avoid expensive exchange rate mark-ups when withdrawing balances in different currencies.
How do I withdraw money from PayPal?
You can withdraw money from your PayPal account balance through the PayPal app, or by logging into your account online. Then, you’ll have a choice of two options - withdrawing straight to your bank account, or to a linked debit card.
How to transfer money from PayPal to a bank account¹
Ready to send money from your PayPal balance to your bank account? Here are the steps you need to follow to do it online:
- Head to the PayPal website and log into your account
- Go to ‘Wallet’
- Select ‘Transfer money’ and then ‘Withdraw from PayPal to your bank account’
- Choose the linked bank account you want to send the money to - if you haven’t already linked a bank account, skip ahead to the next section to find out how to do it.
- Enter the amount you want to transfer, check the details and confirm.
Withdrawing money using the PayPal app is even easier, as all you need to do is tap your PayPal balance and then select ‘withdraw money’.
How to link your bank account with PayPal²
Before you can withdraw your PayPal balance as above, you’ll need to first link your bank account to PayPal. Follow these steps:
- Go to ‘Wallet’ after logging into your PayPal account
- Select ‘Add a bank account’
- Enter your bank account details, including sort code and account number.
You may also need to complete a few security checks, especially if you want to use your bank account as a funding source for PayPal transactions. This usually involves a verification process, where PayPal will deposit 1p in your account along with a 4-digit code. You’ll use this code to confirm that you are the owner of the account.
PayPal exchange rate
Have a PayPal balance in a different currency to your bank account? For example, if you’ve been paid by an overseas client in US dollars, your PayPal balance will be in US dollars.
If you want to withdraw it to your UK sterling bank account, you’ll need to know about PayPal’s exchange rates for currency conversion.
PayPal adds a mark-up³ to the mid-market exchange rate - this is the rate you’ll find on Google or using an online currency converter, and the rate that Wise uses. The margin added may depend on the currency, and the exact transaction you’re carrying out.
How to get a PayPal balance for a better rate
Exchange rate matters when you need to send and receive money in other currencies, so how do you ensure you get a fair rate? One option is to use Wise to avoid PayPal’s exchange rate mark-up.
Open a Wise multi-currency account and you can get your own local account details for multiple currencies, including USD, EUR, AUD and many more. You can use these international account details to withdraw your PayPal balance.
So, if you hold a PayPal balance in USD, you can withdraw it using your US bank details from Wise. This means that PayPal doesn’t need to do a currency conversion, so you can avoid the mark-up on the exchange rate. If you do need to convert to GBP, you can do it easily and cheaply with Wise - benefitting from the mid-market exchange rate and tiny fees.
PayPal fees: How much does PayPal charge?
Here’s a roundup of the most common withdrawal costs you need to know about, to get you started.
| Service | PayPal fee³ |
|---|---|
| Withdraw money to a registered UK bank account - no currency conversion | Free |
| Withdraw funds to a bank account - including currency conversion | Mid-market exchange rate + 3% (mark-up) |
It’s also important to remember that some banks may charge to receive incoming payments - you’ll need to check your account terms and conditions for details.
PayPal withdrawal limit in the UK⁴
With PayPal, you can withdraw any amount to your confirmed bank account provided you have enough money in your PayPal balance. However, there may be delays and restrictions imposed for security reasons, such as to comply with anti-fraud processes. And new users may have limitations on their PayPal activity until they are able to verify their bank account⁵.
PayPal debit card
If you want to convert PayPal to cash, then you’ll need a PayPal debit MasterCard to spend the money held on your account. In order to get a PayPal debit card, you’ll need to have a PayPal Business account⁶. At the time of writing, PayPal doesn't offer a linked debit card for personal customers in the UK. If you have a PayPal Business account, then you will be able to spend your PayPal balance conveniently, online or in stores.
If you don’t have a business account with PayPal, but you still want to spend with a linked debit card from a convenient online account - there are alternatives out there, such as the Wise multi-currency account with a linked debit card.
It lets you spend in any currency you hold on your account, and withdraw up-to the currency equivalent of £200 a month from ATMs for no fee. There’s no exchange rate markup, if you need to switch from one currency to another - just a small transparent fee.
Contact PayPal
If you’re having any issues relating to PayPal withdrawals, here’s how to get help⁷:
- Login to your PayPal account and go to ‘Help’
- Send a message via the PayPal Assistant live chat service
- Use the Resolution Centre to resolve issues with transactions or your account
- Call PayPal Customer Service on 0203 901 7000 - for a quicker service, you can use a one-off passcode generated in your online account.
After reading this, you should have all the info you need on how to withdraw money from PayPal, including the steps to follow, fees and how to get help if you need it.
Just remember that when it comes to withdrawing money from your PayPal balance in other currencies, there are cheaper options available. Wise offers the real, mid-market exchange rate and fair, transparent fees - and it could save you a bundle if you regularly receive PayPal payments in other currencies.
Sources used for this article:
- PayPal - how do I withdraw money from PayPal to my bank account
- PayPal - how do I add my bank account to my PayPal account
- PayPal - PayPal fees
- PayPal - withdrawing money
- PayPal - how can I remove sending, receiving and withdrawal limits
- PayPal - PayPal Business debit MasterCard
- PayPal - contact
Sources checked on 17-October-2022.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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