Link A Bank Account to Your PayPal Account

Feb 20 2020 | PayPal editorial staff

Linking a bank account allows you to withdraw money you receive. 
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So you’ve signed up for your PayPal account and may have linked your credit or debit card to skip the hassle of typing your financial details each time you pay online. With PayPal, you can also add a bank account to withdraw any funds sent to your account.  

Linking Your Bank Account 

Step 1: Link a new bank account 


To start linking a new bank account, look for Wallet on the top bar, which brings you to an overview of your current PayPal balance, as well as linked credit or debit cards. Simply click on Link a bank account to start the process. 

Step 2: Add in your bank account details


We’ll need to know the country/region of your bank, and details such as the bank name, bank code, branch location, branch code, and your account number. Double check that the names on your bank account and PayPal account match to prevent paying a fee for returned withdrawals. 
 
Tip: Remember to look out for the “secure” lock on the top right edge of the page to make sure you’re on the right page.

Step 3: Confirm Your Bank Account 


Once you’ve done that, we’ll send you an email to notify you of two small deposits (between $0.01 and $0.99 HKD) made to your bank account.  

These should show in your bank account within 2-3 working days. Once you’ve received them, click on the link in the email to enter the deposit amounts for verification on the PayPal website.  

And that’s it, you’re done! You can now use your account to pay for your online purchases, and withdraw PayPal funds to your bank account in full.  

Topping up your PayPal balance 

Having your bank account linked also allows you to transfer funds into your PayPal account, so you’ll have another way to pay securely online 


All you have to do is look for Top up after logging in to PayPal dashboard to download PayPal’s designated bank account information. Then you can transfer the funds from your online banking or bank branch. You should see the funds in your PayPal account within 3-6 days. We’ll also send you an email to confirm the top up. 

Withdrawing payments to your bank account

To withdraw funds from your PayPal balance to your bank account, simply go to the same payment dashboardclick Withdraw money on the left of the page, enter the amount you wish to withdraw and click Continue. Once you’ve done that, review the details before clicking Withdraw.

Adding a credit or debit card to pay, and withdrawing funds you receive, are just examples of the many ways you can use your PayPal account. You can find out more on how to make the best out of your account, or simply start shopping now

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

Frequently asked questions.

All US payment processors, including PayPal, are required by the Internal Revenue Service(IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. Form 1099-K and B-Notice are tax forms which are applicable to holders of accounts both within and outside the United States since it pertains to income reporting for US persons/entities.

FATCA affects account holders that are outside the United States, and it requires PayPal to collect tax documents or certifications from account holders stating whether they are US persons. This includes, but is not limited to, business entities, and some individuals that open accounts outside the United States.

Tax Form 1099-K Tips:
  • If you feel there is a discrepancy in your tax Form 1099-K, please review your reconciliation report and provide us with the transaction ID(s) in question and the justification for why the transaction is being disputed. Click Contact us at the bottom of any page to call or email us.
You can also view these additional support articles:
B-Notice Tips:
  • If there are any discrepancies with your tax identification number and legal name that was used by PayPal for tax Form 1099-K reporting filing with the IRS, you may receive an IRS B-Notice.
  • The B-Notice mailing will provide you with all of the additional information we need from you. You need to take these action if you've received a B-Notice.
  • View our tax information page for more information.
  • Fully complete and sign the relevant form and upload it by logging into your PayPal account and following the Notification prompts.

FATCA Tips:
  • Only impactful for account holders outside of the United States.
  • PayPal must collect documentation such as certification of non-US status and either a tax Form W-9 for US persons or entities that are subject to US tax, or a tax Form W8BEN/W8BEN-E for non-US persons or entities that are not subject to US tax withholding and reporting.
  • Most business users who need to provide the requested information will be able to do so by logging into their PayPal account and following the Notification prompts.
You can also view these additional support articles:
You can find more tax related information on the PayPal IRS tax website.

PayPal Seller Protection helps protect sellers in the event a buyer lodges a claim that the payment was unauthorized, or a buyer lodges a chargeback with their card issuer claiming they did not receive the item. Unless already available in your market, for all transactions made on or after 13 April 2020, Seller Protection will be extended to intangible items such as travel, ticketing services and digital goods. With PayPal Seller Protection, you may be protected for the full amount of all eligible transactions.
 
Below are some of the main requirements you need to meet to benefit from Seller Protection:

  • The transaction must be marked as eligible or partially eligible for Seller Protection on your Account Transaction Details page.
  • Your account must be in good standing.
  • You must respond to our requests for documentation and other information within the required timeframe. 
For physical goods:
  • You must ship the item to the address on the Transaction Details page.
  • You must provide proof of shipment, proof of delivery, or signed delivery confirmation where applicable. 
For intangible or digital goods: 
  • You must provide provide compelling evidence that the intangible item or digital good was delivered or provided as described, or that the service was completed as described. Compelling evidence can include any evidence available to prove that your buyer received the goods or services or benefited from the transaction.
  • You must comply with any terms and conditions that apply to the purchase.
  • You must comply with all technical integration requirements that were specifically notified to you by PayPa
Seller Protection will not apply to:
  • Claims or Chargebacks submitted on the basis the item was ‘Significantly Not as Described’
  • Items that you deliver in person, including at a retail point of sale
  • Items equivalent to cash, including but not limited to gift cards
  • Donations
  • Financial products or investments of any kind
  • A payment sent using PayPal’s friends and family functionality
  • A payment made using PayPal’s Account Optional (or Guest) Checkout, PayPal Payouts, Mass Pay, PayPal Direct Payments, Website Payments Pro or Virtual Terminal Payments, PayPal Business Payments and PayPal Here
  • For shipped items, any item that is not shipped to the recipient's shipping address on the Transaction Details Page. We recommend that you do not use a shipping service arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.

There are no limits or caps associated with Seller Protection. However, PayPal reserves the right to withdraw Seller Protection if the Seller abuses the privileges offered. In the event of withdrawing Seller Protection, PayPal will communicate the same before taking any action.
 
For full eligibility requirements, see the full Seller Protection Policy terms in the PayPal User Agreement, but please note that we will not update the User Agreement immediately when making this change. 
 
Depending on when you view the User Agreement it may still indicate that intangible items services and digital goods are ineligible, which will no longer be correct, however all other exclusions will remain in effect.

Since you receive payments for goods or services through PayPal, we're required to submit a tax Form 1099-K to the IRS when the payments you receive meet the reporting thresholds set by the IRS. Recently, the U.S. Internal Revenue Service (IRS) identified a mismatch between your legal name and taxpayer identification number (TIN) in their records. As a result of this mismatch, you received a B-Notice.

Because we complete the required information on the Form 1099-K using the information that you supply to us through your PayPal account, we ask you to take action on your account.

The B-Notice we sent provides the additional information we need from you. You've received either a 1st B-Notice or a 2nd B-Notice.
  • If you received a 1st B-Notice (which happens the first year that the IRS identifies a mismatch in legal name/tax identification number), log in to your PayPal account and click the bell icon (Alert notification) to provide the necessary information. Note that you may be required to download and fill out a tax Form W-9.
  • If you received a 2nd B-Notice (which happens the second consecutive year that the IRS identifies a mismatch in legal name/tax identification number), please provide either a copy of your Social Security Card (individuals or sole proprietors) or a US IRS tax Letter 147C (entities). Log in to your PayPal account, and go to the Resolution Centre to upload the document.
Note: The IRS doesn't have an online solution for requesting a tax Letter 147C; the IRS will mail or fax the letter to you. To contact the IRS for a Letter 147C you should call the IRS's Business and Specialty Tax Line at 1-800-829-4933 between 7am and 7pm, local time, Monday through Friday. Requesting a faxed copy may be the quickest manner to get a copy of the tax Letter 147C. You can visit our PayPal IRS 6050W website for more information (visible only to logged-out viewers).

Please note that the information or relevant tax Form needs to be processed by PayPal before the deadline mentioned on the B-Notice in order to prevent your account from becoming further limited.  

Note:
  • If you've multiple PayPal accounts, you may need to verify that your tax identification number is accurate for each account.
  • Please make sure all pages of the document are included and signed if applicable prior to logging in to your PayPal account and uploading the document. You may also send documents to:
Tax Operations
PayPal
PO Box 45950
Omaha, NE 68145
The PayPal Developer Centre (in English only) offers support for developers who have questions about technical topics, such as APIs, PayPal product integration, or testings. You can also find useful information on the PayPal Community Forum, or contact our technical support specialists on Merchant Technical Support.

Below is a list of common topics searched for by developers: 

Account Authentication
Information about validating your visitor's PayPal account.

Encrypted Website Payments
To make online payments more secure, you can make Encrypted Website Payment buttons that rely on standard public key encryption for protection.

Identity API
PayPal offers a secure commerce Identity API that lets your customers sign in to your web site using their PayPal credentials.

Instant Payment Notification
Instant Payment Notification is a message service that automatically notifies merchants of events related to PayPal transactions.

Invoicing
Merchants, developers, and business solution providers use Invoicing APIs to automate the creation, delivery, tracking, and reconciliation of invoices with an integrated payments solution.

Mobile SDK
Accept PayPal, credit cards and other payments methods through mobile apps.

Name-Value Pair (NVP) API
Information and support on name value pairs and NVP SDKs.

PayPal Checkout
PayPal Checkout gives your buyers a simplified and secure checkout experience that keeps them local to your website or mobile app throughout the payment process.

PayPal Sandbox Support
Information and support for users testing in the PayPal Sandbox environment.

PayPal Shopping Cart
The PayPal Shopping Cart system allows buyers to select multiple items on your website and pay for them with a single payment.

Permissions Service API
PayPal's permissions service enables you to request and obtain authorization to make API calls and take action on behalf of your customers.

SOAP
The PayPal SOAP API is based on open standards known collectively as web services, which include the Simple Object Access Protocol (SOAP), Web Services Definition Language (WSDL), and the XML Schema Definition language (XSD).

Testing Your Apps in Sandbox
A guide for developers testing their apps in the PayPal Sandbox environment.

Virtual Terminal
Information about PayPal's Virtual Terminal - a web-based application that processes credit and debit cards, replacing swipe machines.

Website Payments Pro
PayPal's Website Payments Pro is an API-based solution that enables merchants and developers to accept credit cards, debit cards, and PayPal payments directly on their website.
 
Website Payments Standard
You can accept credit cards online easily and offers a streamlined checkout experience to customers using mobile devices.
The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.