Making a withdrawal from your Paypal account is easily accomplished and can be done a few different ways. In general, dealing with funds via Paypal is an easy process, with limited drawbacks, making it the preferred way to transfer money online.
Paypal = Online Bank
Think of Paypal as an online bank. It's really no different than a regular bank. It just has a different method to access your money, as you make your transactions online instead of by mail or in person. It holds your money for you and allows you to receive payments or make payments. With a Paypal account you can:
- Add Funds
- Withdraw Funds
- Send money
- Request money
- Receive Money
- Use a Debit Card
Three Ways to Make a Paypal Withdrawal
To make a withdrawal from your Paypal account is really no different than making a withdrawal from a bank. If you're dealing with a bank, you can either write a check, use your debit card, or make a withdrawal. With Paypal, you have similar options.
Transfer Funds to Your Bank Account
In order to make transactions to and from your bank account, you first need to create that gateway. After you provide Paypal with your bank account information, they will make two very small deposits to your account. Once you verify to Paypal that you have received the two amounts, you can verify the account.
With the account verified, choose the "Withdraw" tab in your account, followed by the option to "Transfer to Bank Account." Enter the amount you want transferred, making sure it exceeds the minimum withdrawal amount. For United States currency, the minimum amount is $1.00. Make sure the appropriate bank account is chosen in the "To" area of the page and click "Continue." Paypal gives you another screen to verify this information. Click "Submit" when you're sure the amount and account are correct.
Request a Check
To request a check, choose the "Withdraw" tab in your account, then choose the option "Request a Check." Enter the amount desired. Below the amount is any addresses already associated with your account. Either choose one of these, or add in a new address, to have the check mailed to you. When you click "Continue," you'll be presented with another screen to verify the information. When you're sure everything is correct, click "Submit."
Use Paypal Debit Card at an ATM
To use a Paypal debit card, there is more involved initially, but after the initial setup, it's the quickest way to receive your cash. Before you can use this option, you'll need to apply. Choose the "Withdraw" tab in your account, followed by Use Debit Card. If you don't have a Paypal debit card, it will provide you with the application form. You will need to fill this out with your credit card information and the billing address that's on your credit card. When you've filled it out completely, click "Add and Confirm Address."
Once you get your Paypal debit card in the mail, you can use it the same way you'd use any other debit card, to either pay for items or withdraw cash. With a backup funding source indicated, if you desire more money than you have in your Paypal account, the debit card will first use whatever funds are in your Paypal account, and then take the remaining amount from the funds in your backup funding source.
Disadvantages and Advantages
The disadvantages and advantages between these three ways of withdrawing cash from Paypal all come down to the processing time allowed, as well as the cost. The time ranges from instantaneously to ten days, and between free and $1.50. The differences are highlighted below.
- Transfer Funds - It can take up to three to four business days, but is free.
- Request a Check - It takes the longest, at a five to ten day wait, and costs $1.50.
- Using Paypal Debit Card - There is no wait, other than initially getting the card, and is free.
An additional disadvantage for the Debit Card is a daily ATM limit of $400. An additional advantage is that you can earn cash back rewards by using the Paypal Debit Card. Once you sign up for the Preferred Rewards program, you'll get cash back for every purchase with your Paypal debit card that doesn't require a PIN.
Choose What's Right for You
With three different options, it means everyone can choose what method is best for them, just like at any banking institution. Using Paypal to make a withdrawal or any other sort of financial transaction can be just as simple as doing the same thing at a bank.
