When someone uses PayPal to pay for an item from your Etsy shop, the funds for that transaction land in your PayPal account. Although you're free to leave them there, at some point, you'll likely want to transfer them to your bank account, especially as your Etsy business grows. Fortunately, doing so is easy. Plus, PayPal charges you zilch to process the transaction (although your bank may hit you with a charge).
To transfer money from your PayPal account to your bank account, log in to your PayPal account and follow these steps:
If you aren't already there, click the My Account tab.
Place your mouse pointer over the Withdraw link at the top of the page and choose Transfer to Bank Account from the menu that appears.
The Withdraw Funds by Electronic Transfer page opens.
In the Amount field, enter the amount of money that you want to transfer.
Click the To drop-down list and choose the account to which you want to transfer the funds, and then click the Continue button.
The Review Withdraw Funds page opens.
Review the details of your transaction; assuming that everything is in order, click the Submit button.
PayPal processes the transaction.
It may take three to four business days for your funds to appear in your bank account.
Especially if you plan to grow your Etsy business into a full-time operation, do yourself a favor: Open a business bank account for your Etsy shop, preferably with a credit or debit card. Then use that account to handle all expenses related to your Etsy shop. At tax time, you won't have to cull your business transactions from your personal ones to report your business expenses. Plus, if you ever need to verify your income — say, if you're taking out a loan to make a major purchase — you'll be able to provide the lending authority with everything it needs.