How to set up paypal direct deposit

PayPal has become a popular way to send and receive money because of its low cost, ease of use and ability to accept currencies from around the world. If you sell goods and services online, your customers can pay you through this service. After you set things up once, you can deposit money directly from your PayPal to your Chase account with a few clicks.

1. 1.

   Sign in your PayPal account to display the My Account page. If it’s not showing, click the “My Account” tab.

2. 2.

   Move your cursor to “Profile” and choose “Update Bank Account” to display the Bank Account page.

3. 3.

   Click the “Add Bank” button to display the Link and Confirm Your Bank Account page.

4. 4.

   Choose “Checking” or “Savings” to define the type of Chase account you want to use. Enter the routing number of your bank, which you can find on the bottom left of your check. Then enter the account number, which is on the bottom right of your check. If you have trouble finding these numbers, contact Chase customer service (link in Resources), and ask for this information.

5. 5.

   Click the “Continue” button to display the Confirm Your Bank Account screen. If you already have a Chase online bank account, click the “Confirm Instantly” button and enter your online login information from your Chase account. This is the quickest way to confirm your account. Otherwise, click “Confirm in 2-3 Days.” PayPal deposits two small amounts under $1 into your Chase account within two or three business days. You then confirm these amounts when you log in your PayPal account. Whatever your choice, your Chase account appears in your PayPal Bank Account page, allowing direct deposits from PayPal.

   Direct deposit is a very convenient method for automatically depositing payments received electronically. Direct deposit eliminates the inefficient, environmentally unfriendly, and expensive use of paper checks for payer and payee.

   What is Direct Deposit?

   Direct deposit is an electronic deposit sent from a payer to a payee’s account or a prepaid debit card, following set-up instructions. A direct deposit may use electronic ACH bank transfers or another electronic payment method offered by the payer. 

   When to Use Direct Deposit

   You can use direct deposit to pay employee payroll or independent contractor freelancers, receive an IRS tax refund, and pay or receive other business or personal electronic payments. The U.S. and state governments make Social Security benefits and other payments to recipients via direct deposit. Direct deposit can be one-time or recurring.

   States, for example, offer direct deposit for child support payments. 

   Direct deposit can be implemented by a payroll service used by small businesses or directly by an employer with in-house payroll. 

   Where to Send Direct Deposits

   Direct deposits can be sent electronically to a recipient’s bank account(s), a prepaid debit card, or an online payment service platform like PayPal. Recipients may not need to have a bank account to receive a direct deposit if the payer allows non-bank direct deposits. 

   Some prepaid debit cards can be used to pay for purchases and allow cash ATM withdrawals.

   How to Set Up Direct Deposit

   While there are different steps to set up direct deposit depending on which platform you use, the main steps are generally the same.

   1. Acquire a direct deposit form from your employer
   2. Fill out the form
   3. Decide what percentage of payment you want directly deposited
   4. If required, attach deposit slip or voided check
   5. Return the form to your employer

   For direct deposit in a financial institution, you’ll need to furnish your bank account information for a bank-to-bank electronic transfer. In the U.S., ACH bank transfers are processed through the Automated Clearing House, whether your financial institution is a bank or credit union. 

   Bank account information to furnish includes the ABA-issued bank routing number and your bank account number shown on the check. The payer may request that you send a voided check or deposit slip so they can verify your direct deposit information, including the bank routing number and bank account number. 

   The first two sets of steps below show how to set up payroll-related direct deposit from a form or online portal or through the PayPal mobile app. PayPal Direct Deposit is also used for direct deposits from government agencies. A PayPal Balance account with no limitations is required. If PayPal receives the payment instructions early, it offers early access payment up to two days early.

   The third set of steps is how to pay freelancers or independent contractors through Upwork with online banking in the United States.  

   You can also set up and make global mass payments with direct deposit to independent contractors and freelancers through your AP automation and global mass payments software.

   Payroll Direct Deposit Set-Up

   Steps to set up payroll direct deposit are:

   1. Use an online portal or request a direct deposit form from your employer or a financial institution. 
   2. Provide your employee name, address, phone number, bank routing number, bank name and address, account number, and Social Security Number, if requested.
   3. Choose the type of account: checking account, savings account, prepaid debit card, PayPal, or another online payment service, if allowed as a payment option. 
   4. Indicate the percentage or the requested deposit amount for each account. If all goes to a checking account, that’s 100%. If it’s a split direct deposit, the percentages could be 80% checking/20% savings. 
   5. Electronically sign the direct deposit form. 
   6. Submit the direct deposit form to your employer’s payroll department. 

   PayPal Direct Deposit Set-Up

   Steps to set up a PayPal Direct Deposit from your employer or government agency in the PayPal app are:

   1. Click on your PayPal app photo to activate the menu. 
   2. Select Direct Deposit from the menu.
   3. PayPal provides a routing number and account number for direct deposit.
   4. Click the Complete Direct Deposit Form.
   5. Enter employer name or government agency name. 
   6. Choose a percentage (100%/75%/50%/Other) from “How much do you want to add from each check?”
   7. Add your e-Signature.
   8. Click Review Form.
   9. Email a direct deposit form to your employer or the government agency, or print and send it. 

   Upwork Direct Deposit Set-Up for Freelancers

   Steps to set up direct deposit through Upwork when using a U.S.-based bank: 

   1. Go to Settings / Get Paid
   2. Add Method
   3. Click the Set Up button
   4. Enter your bank account detail information
   5. Choose a payment schedule
   6. Click Next

   Other Types of Direct Deposits

   Ask the payer or read their website for instructions on how to set up direct deposits of other types. 

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   When Direct Deposit SetUp Starts Working

   A payroll direct deposit doesn’t start working immediately after setting it up. It takes one or two pay cycles to start. Once direct deposit payments begin, the direct deposit usually takes one to three business days to process but can take five days. Upwork direct deposit is effective three days after the freelancer confirms the account.

   If another type of direct deposit is set up, ask the payer when they expect the direct deposit to become effective for automatic deposits. 

   Benefits of Direct Deposit

   Direct deposit benefits the payer and payee. Businesses reduce time and save money. Instead of printing, distributing, processing, and depositing checks, they make electronic transfers. Direct deposit reduces the risk of lost or stolen paper checks. Direct deposit can be used for recurring payments/deposits. Global payments can be made with direct deposit.

    With direct deposit, employees and independent contractors don’t need to scan checks to deposit them through a mobile app or make a trip to the bank. 

   FAQs (Frequently Asked Questions)

   Can a payroll direct deposit be split into more than one bank account?

   Generally, you can split a direct deposit between a checking account and a savings or money market account. It’s beneficial for payroll direct deposits. If you give extra routing numbers and bank account numbers, you can even split the direct deposit between accounts in different banks.

   Can you direct deposit into a business account?

   Yes. Business bank accounts and personal accounts are used for direct deposit, depending on the type of direct deposit.

   How do I get my direct deposit info from PayPal?

   Log into your PayPal account and select Settings. Click Set up or view direct deposit. You'll be given your PayPal assigned account and Paypal routing number. Give these details to your employer to set up direct deposit payments.

   Can you direct deposit from PayPal to bank account?

   Download the PayPal mobile app and log in to your profile. Go to “My Wallet” and click “Transfer Money”. Click “Transfer to your bank” then select the bank you're sending the money to.

   Is PayPal direct deposit free?

   There is no cost to direct deposit your paychecks, tax refunds, and government benefits into your PayPal account. Link your bank account to your PayPal account and transfer money between the two. We do not charge a fee for this service.

   Why can't PayPal do direct deposit?

   Direct Deposit is only available on PayPal accounts in the US for customers who have a PayPal Cash Plus account. In addition, customers who have enrolled for a PayPal Cash Card are auto-enrolled for Direct Deposit.