PayPal is an incredibly useful tool and a brand that’s trusted worldwide. Yet, the minimum and maximum transaction limits can be confusing and inconvenient for your business.
Just know, these restrictions are there for a reason. Transfer limits serve a valuable role in protecting the security of users and any linked bank accounts.
Below, you’ll find some brief information on what the transfer limits are, the amounts of the limitations, and how to increase what you can send in a single transaction.
Key Takeaways
- PayPal has limits on how much money you can transfer that depend on factors like payment method and a verified account.
- The PayPal transfer limit is $10,000 in a single transaction immediately after opening an account, or up to $60,000 per transaction by providing bank account or other identification.
- A PayPal account can also be verified by applying for PayPal Credit
- Instant transfers have varied transfer limits that depend on how your account is connected
What’s a Transfer Limit?
Just as it sounds, a transfer limit is a cap on how much you can send through PayPal in a single transaction.
This is important information to understand, especially if you run an online business. It’s also useful to know the minimum and maximum amount if you make payments across borders for online employees. Unlike traditional checks, transfer fees and limitations can affect how much your staff actually receives.
Why Does PayPal Have Transfer Limits?
Unlike many payment processors and electronic wallets, PayPal has transfer limits in place to ultimately protect the user. These transfer limits can help to:
- Require business owners to verify their identity through multiple steps to ensure trust
- Prevent users from sending too much money because of a typo
- Keep someone unauthorized from sending too much money in a single transaction
Although transfer limits can be annoying (especially for a business account) there are ways to lift them and prevent them from affecting your cash flow.
What is the Maximum Transfer Limit on PayPal?
For a normal PayPal member, the maximum transfer limit is $10,000 per transaction, no matter what your PayPal balance is. If you need a money transfer for a greater amount, multiple payments will still get the job done.
There is also a $500 maximum limit for withdrawals from an unverified account. Additional PayPal fees may apply.
What is the Minimum Transfer Limit on PayPal?
PayPal accounts have a minimum transaction amount of $0.01. This basically means there is barely any amount of money required to send a transfer with this financial service.
Lifting PayPal Transfer Limits
PayPal works better when you trust them. The best way to get around strict transfer limits is to become a verified user of the online payment platform. When you provide more information about your identity, it eliminates security risks.
Once your account is verified, a business can send up to $60,000 per transaction. There are also no limits on how much you can send from your PayPal account overall. Since your financial institution is now connected, the transactions become more like a bank transfer or a wire transfer.
Freelancers and small business owners should be the first to verify their accounts. Having a higher maximum limit enables you to use PayPal as a more reliable payment method. You can also accept payments more quickly with a verified account.
Don’t limit yourself with limited payment methods!
Remittance data and payee research shows you should be offering more than one way to pay.
How Do I Verify my PayPal Account?
If you need to lift your transfer limits, it’s time to verify your PayPal account. In order to authenticate the account, you must do one of two things:
#1) Apply for and get approved by PayPal Credit
and/or
#2) Link a bank account, debit card, or credit card (like Visa or Mastercard)
When linking a bank account, you’ll need your bank account number, location, and bank routing number. The system will also ask you to confirm an email address and/or phone number. Remember, the more information you provide, the easier it is for PayPal to protect your account.
Verification Email
The final step to connecting your bank account is important. Once you enter the bank account and routing number, PayPal will make two small deposits into the bank account within the next few business days. These are usually just a few cents.
Once the deposits are made, you will be sent a verification email. Log back into PayPal and enter them into the system when prompted. Your account with then be granted a “verified” status and the transaction limit will be extended.
Instant Transfer Limits
PayPal transfer limits operate the same way for most transactions, but there are different rules for instant transfers.
The Instant Transfer service allows you to make or receive PayPal payments to an eligible bank or debit card within 30 minutes. Due to the speed, there is typically a 1.5% fixed fee that accompanies the transfer.
The amount of PayPal instant transfer limits also depends on how your account is connected. Here are the limitations for both ways:
Bank Account Transfer Limits
PayPal’s instant transfer limit for banks is a flat maximum of $25,000 per transaction. This is significantly higher than the maximum sending limit if you connect through a debit card because your identity is already verified.
Debit Card Transfer Limits
When connecting with a debit card, there is a minimum transfer amount of $1.00 per transaction. The maximum limits for debit card payments are as follows:
- $5,000 maximum per transaction
- $5,000 maximum per day and week
- $15,000 maximum per month
Can Instant Transfer Limits be Lifted?
There is no way to lift the maximum transaction limits for the Instant Transfer feature. These restrictions must be kept in place due to the expedited nature of the transaction. This is in place to protect you from losing too much money in the event of theft or fraud.
It should be noted, business owners can make an instant transfer as many times as they’d like using a linked bank account. The maximum limit is only on a “per-transaction” basis.
Summing it Up
PayPal has put these transfer limits in place to protect your private account information. The brand knows they are entrusted with the most secure financial data on the planet, and have mechanisms in place to protect sensitive information.
One workaround to transfer limits is to verify your personal PayPal account. If the PayPal limits still affect your business cash flow, consider breaking up the single transaction into a batch.
If you are still having trouble, you may want to consider another platform that can accommodate your growing business. There can be signs it’s time to add more payment methods to the mix. Find out what those are in our eBook: Have You Reached PayPal’s Tipping Point?
