How Does PayPal Work With Bank Accounts?

Linking
A PayPal account is linked directly to a bank account. This can be done with a debit or credit card or with the routing and account numbers off of a check.
Transfer
Money can be transferred from your bank account to PayPal to use online for purchasing goods and services where accepted. This is one way to assure you have money to pay for the item (seller protection) and a way to stay in a budget.
Deposit
You can also transfer money from PayPal to your bank account when you receive payments for goods and services. The transfer may cost a fee (depending on the type of account you have and amount you are depositing). It may also take anywhere from one to 10 business days.
Debit
PayPal accounts now have an option to come with two free debit cards. This means you can use the money in your PayPal account anywhere MasterCard is accepted. The card must be activated like a bank debit card, and you must set a PIN for the card. It can be used as debit or credit, just like a banking debit card.
Overdraft
If you accidentally overspend and your PayPal sits at a negative balance, you can transfer money from your banking account to fix the problem. There are no overdraft fees with your PayPal account, but if you do not fix your problem within a couple days (by making a deposit or transfer), PayPal can automatically deduct the difference from your bank account.