Free Guide to Moving Money Between Cash App and PayPal

Understanding Cash App and PayPal Transfer Methods

Cash App and PayPal are two of the most widely used digital payment platforms in the United States. As of 2024, Cash App has approximately 55 million monthly active users, while PayPal serves around 429 million accounts globally. Both platforms allow you to send and receive money, but they operate with different underlying technology and fee structures. Understanding how each platform works is the foundation for moving money between them.

Free Guide to Synchrony Sam's Club Credit Card Login →

Cash App, owned by Block Inc., is primarily a peer-to-peer payment system that connects directly to your bank account or debit card. It's known for its simple interface and quick transfer times. PayPal, founded in 1998, operates as both a peer-to-peer payment system and a digital wallet. PayPal also owns Venmo, which is similar to Cash App but targets a younger demographic.

Neither Cash App nor PayPal can directly transfer money to each other's accounts. This is because they use separate banking networks and payment systems. The most straightforward way to move money between these platforms is through your personal bank account, which acts as the intermediary. Most bank transfers from either platform take 1-3 business days, though some financial institutions process transfers faster.

Both platforms charge different fees depending on the type of transfer. Cash App charges 1.5% for instant transfers to a debit card (with a minimum fee of 25 cents and maximum of $25), while standard transfers to a bank account are free but take 1-3 business days. PayPal offers free transfers to a bank account within 1-3 business days, and instant transfers to a debit card for 1.75% of the transfer amount (minimum 25 cents).

Takeaway: Before moving money between Cash App and PayPal, know that you'll need to use your bank account as a middle step. Compare the timing you need with the fee structure of each platform to choose the most cost-effective route.

Step-by-Step Process for Withdrawing Money from Cash App

To move money from Cash App to your bank account—the first step in transferring to PayPal—you'll need to initiate a withdrawal. The process is straightforward and takes only a few minutes. Start by opening the Cash App on your smartphone and locating the "Cash" icon at the bottom of the screen. This will display your current balance.

Learn About IKEA Credit Card Payments →

Next, tap the "Cash Out" option, which should appear as a button on your screen. Cash App will then ask you to choose between two types of transfers: "Standard" or "Instant." Standard transfers are free and typically arrive in your bank account within 1-3 business days. If you choose Standard, you won't incur any fees. Instant transfers cost 1.5% of the amount you're sending (with fees capped between 25 cents and $25) and usually arrive within 30 minutes.

After selecting your transfer type, enter the dollar amount you want to withdraw. Cash App will show you exactly how much you'll receive after any applicable fees. Review this information carefully before proceeding. Once you confirm the amount, the transfer processes immediately for Instant transfers or queues up for the next business day for Standard transfers.

You should ensure your bank account is already connected to Cash App before attempting to cash out. If it isn't, you can add your account information through the settings menu. You'll need your bank's routing number and your account number, both of which can be found on a blank check or through your online banking portal. Cash App uses industry-standard encryption to protect this information.

After your transfer completes, you'll receive a notification. Keep records of these transactions, especially if you're conducting multiple transfers. Your bank account statement will show the deposit, which typically displays as coming from "Square" (Cash App's parent company) or "CASH APP."

Takeaway: Use Cash App's standard transfer option when possible to avoid the 1.5% fee. Standard transfers are free and arrive within 1-3 business days, making them ideal for moving money to your bank account before depositing into PayPal.

Depositing Money Into Your PayPal Account

Once money arrives in your bank account, you can transfer it to PayPal. PayPal doesn't allow direct bank transfers in the way some people expect—you can't push money from your bank into PayPal. Instead, PayPal works with a pull system for bank account connections. This means you link your bank account to PayPal, and PayPal can withdraw funds from that account when you initiate a transfer.

How Capital One Credit Cards Work Guide →

To link your bank account to PayPal, log into your account and navigate to the "Wallet" or "Settings" section. Select "Link a Bank Account" and follow the prompts. PayPal will ask for your bank's routing number, your account number, and your account type (checking or savings). This information is the same as what you'd provide to Cash App.

After linking your bank account, PayPal will conduct a verification process. In most cases, PayPal makes two small deposits (typically under $1) into your bank account within 1-2 business days. You'll need to log back into PayPal and confirm the exact amounts of these deposits to verify your account. This verification protects against unauthorized access and fraud.

Once your account is verified, transferring money from your bank account to PayPal is simple. Log into PayPal, find the "Transfer Money" option, and select "Transfer to PayPal Balance." Choose your linked bank account as the source, enter the amount, and confirm. PayPal will pull the funds from your bank account, which typically takes 1-3 business days. These transfers are free, regardless of the amount.

PayPal offers another option called "instant" bank transfers for certain account types and institutions. These transfers may arrive the same day or within hours, but they may carry a small fee. Check your specific PayPal account settings to see if this feature is available to you.

Takeaway: Link your bank account to PayPal through the Settings menu and complete the two-deposit verification. Then use PayPal's free transfer feature to move money from your bank account into your PayPal balance. This process takes 1-3 business days but costs nothing.

Comparing Fees and Transfer Times Between Platforms

When moving money between Cash App and PayPal, understanding the fee structure is essential to minimizing costs. As of 2024, here's how fees break down for the most common transfer types:

Free Guide to Churches Offering Financial Assistance →

• Cash App to bank account (standard): Free, 1-3 business days
• Cash App to bank account (instant): 1.5%, arrives within 30 minutes
• PayPal to bank account (standard): Free, 1-3 business days
• PayPal to bank account (instant): 1.75%, arrives within an hour
• Bank account to PayPal balance: Free, 1-3 business days

If you transfer $1,000 from Cash App to PayPal using the free method, you'll incur no fees at all. You'll have the full $1,000 in your bank account, and then the full $1,000 will transfer to PayPal. However, if you use instant transfers at every step, the costs add up. Using Cash App's instant transfer ($15 fee on $1,000) plus PayPal's instant transfer ($17.50 fee on $1,000) would cost you $32.50 total, or 3.25% of your original amount.

Transfer times vary based on your financial institution and the platform you use. Most banks process ACH transfers (the standard method used by both platforms) within 1-3 business days. Weekends and holidays can extend this timeframe. Instant transfers use a different technology and are processed immediately or within minutes, but they carry fees as compensation for the faster service.

Consider your specific situation when deciding which transfer method to use. If you don't need the money right away, using standard transfers throughout the process costs nothing and typically completes within a week. If you need funds urgently, paying for instant transfers may be worth the cost, depending on the amount.

Another factor to consider is your bank's processing speed. Some banks, particularly credit unions and smaller institutions, may process ACH transfers more