diff --git a/src/components/SettlementButton/index.tsx b/src/components/SettlementButton/index.tsx
index ab5ae68d523c..56bb9b8d3cf0 100644
--- a/src/components/SettlementButton/index.tsx
+++ b/src/components/SettlementButton/index.tsx
@@ -22,6 +22,7 @@ import useThemeStyles from '@hooks/useThemeStyles';
 import {createWorkspace, isCurrencySupportedForDirectReimbursement, isCurrencySupportedForGlobalReimbursement} from '@libs/actions/Policy/Policy';
 import {navigateToBankAccountRoute} from '@libs/actions/ReimbursementAccount';
 import {getLastPolicyBankAccountID, getLastPolicyPaymentMethod} from '@libs/actions/Search';
+import {isBankAccountPartiallySetup} from '@libs/BankAccountUtils';
 import Navigation from '@libs/Navigation/Navigation';
 import {formatPaymentMethods, getActivePaymentType} from '@libs/PaymentUtils';
 import {getActiveAdminWorkspaces, getPolicyEmployeeAccountIDs, isPaidGroupPolicy, isPolicyAdmin} from '@libs/PolicyUtils';
@@ -214,14 +215,15 @@ function SettlementButton({
         return false;
     }, [policy, isAccountLocked, isUserValidated, chatReportID, reportID, showLockedAccountModal, isDelegateAccessRestricted, showDelegateNoAccessModal]);
 
-    const getPaymentSubitems = useCallback(
+    const getPaymentSubItems = useCallback(
         (payAsBusiness: boolean) => {
             const requiredAccountType = payAsBusiness ? CONST.BANK_ACCOUNT.TYPE.BUSINESS : CONST.BANK_ACCOUNT.TYPE.PERSONAL;
 
             return formattedPaymentMethods
                 .filter((method) => {
                     const accountData = method?.accountData as AccountData;
-                    return accountData?.type === requiredAccountType;
+                    const isPartiallySetup = isBankAccountPartiallySetup(accountData?.state);
+                    return accountData?.type === requiredAccountType && !isPartiallySetup;
                 })
                 .map((formattedPaymentMethod) => ({
                     text: formattedPaymentMethod?.title ?? '',
@@ -376,7 +378,7 @@ function SettlementButton({
                     value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
                 };
                 return [
-                    ...(isCurrencySupported ? getPaymentSubitems(payAsBusiness) : []),
+                    ...(isCurrencySupported ? getPaymentSubItems(payAsBusiness) : []),
                     ...(isCurrencySupported && isPolicyCurrencySupported ? [addBankAccountItem] : []),
                     {
                         text: translate('iou.payElsewhere', {formattedAmount: ''}),
diff --git a/src/hooks/useBulkPayOptions.ts b/src/hooks/useBulkPayOptions.ts
index 29b70bea45be..3a342f1982e2 100644
--- a/src/hooks/useBulkPayOptions.ts
+++ b/src/hooks/useBulkPayOptions.ts
@@ -3,6 +3,7 @@ import type {TupleToUnion} from 'type-fest';
 import type {PopoverMenuItem} from '@components/PopoverMenu';
 import type {BankAccountMenuItem} from '@components/Search/types';
 import {isCurrencySupportedForGlobalReimbursement} from '@libs/actions/Policy/Policy';
+import {isBankAccountPartiallySetup} from '@libs/BankAccountUtils';
 import Navigation from '@libs/Navigation/Navigation';
 import {formatPaymentMethods} from '@libs/PaymentUtils';
 import {hasRequestFromCurrentAccount} from '@libs/ReportActionsUtils';
@@ -98,12 +99,13 @@ function useBulkPayOptions({
         });
     }
 
-    const getPaymentSubitems = (payAsBusiness: boolean) => {
+    const getPaymentSubItems = (payAsBusiness: boolean) => {
         const requiredAccountType = payAsBusiness ? CONST.BANK_ACCOUNT.TYPE.BUSINESS : CONST.BANK_ACCOUNT.TYPE.PERSONAL;
         return formattedPaymentMethods
             .filter((method) => {
                 const accountData = method?.accountData as AccountData;
-                return accountData?.type === requiredAccountType;
+                const isPartiallySetup = isBankAccountPartiallySetup(accountData?.state);
+                return accountData?.type === requiredAccountType && !isPartiallySetup;
             })
             .map((formattedPaymentMethod) => ({
                 text: formattedPaymentMethod?.title ?? '',
@@ -181,7 +183,7 @@ function useBulkPayOptions({
                     },
                 };
                 return [
-                    ...(isCurrencySupported ? getPaymentSubitems(payAsBusiness) : []),
+                    ...(isCurrencySupported ? getPaymentSubItems(payAsBusiness) : []),
                     ...(isCurrencySupported ? [addBankAccountItem] : []),
                     {
                         text: translate('iou.payElsewhere', {formattedAmount: ''}),
diff --git a/src/hooks/usePaymentOptions.ts b/src/hooks/usePaymentOptions.ts
index a397cf284bcc..0684b2edfc1b 100644
--- a/src/hooks/usePaymentOptions.ts
+++ b/src/hooks/usePaymentOptions.ts
@@ -2,6 +2,7 @@ import {useCallback, useEffect, useMemo, useRef} from 'react';
 import type {OnyxEntry} from 'react-native-onyx';
 import type {TupleToUnion} from 'type-fest';
 import type SettlementButtonProps from '@components/SettlementButton/types';
+import {isBankAccountPartiallySetup} from '@libs/BankAccountUtils';
 import type {PaymentOrApproveOption} from '@libs/PaymentUtils';
 import {formatPaymentMethods} from '@libs/PaymentUtils';
 import {getPolicyEmployeeAccountIDs} from '@libs/PolicyUtils';
@@ -16,7 +17,7 @@ import Navigation from '@navigation/Navigation';
 import {isCurrencySupportedForGlobalReimbursement} from '@userActions/Policy/Policy';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
-import type {BankAccountList, FundList, LastPaymentMethod} from '@src/types/onyx';
+import type {AccountData, BankAccountList, FundList, LastPaymentMethod} from '@src/types/onyx';
 import {getEmptyObject, isEmptyObject} from '@src/types/utils/EmptyObject';
 import isLoadingOnyxValue from '@src/types/utils/isLoadingOnyxValue';
 import useCurrentUserPersonalDetails from './useCurrentUserPersonalDetails';
@@ -163,16 +164,24 @@ function usePaymentOptions({
         if (isInvoiceReport) {
             const formattedPaymentMethods = formatPaymentMethods(bankAccountList, fundList, styles, translate);
             const isCurrencySupported = isCurrencySupportedForGlobalReimbursement(currency as CurrencyType);
-            const getPaymentSubitems = (payAsBusiness: boolean) =>
-                formattedPaymentMethods.map((formattedPaymentMethod) => ({
-                    text: formattedPaymentMethod?.title ?? '',
-                    description: formattedPaymentMethod?.description ?? '',
-                    icon: formattedPaymentMethod?.icon,
-                    onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.EXPENSIFY, payAsBusiness, formattedPaymentMethod.methodID, formattedPaymentMethod.accountType),
-                    iconStyles: formattedPaymentMethod?.iconStyles,
-                    iconHeight: formattedPaymentMethod?.iconSize,
-                    iconWidth: formattedPaymentMethod?.iconSize,
-                }));
+            const getPaymentSubItems = (payAsBusiness: boolean) => {
+                const requiredAccountType = payAsBusiness ? CONST.BANK_ACCOUNT.TYPE.BUSINESS : CONST.BANK_ACCOUNT.TYPE.PERSONAL;
+                return formattedPaymentMethods
+                    .filter((method) => {
+                        const accountData = method?.accountData as AccountData;
+                        const isPartiallySetup = isBankAccountPartiallySetup(accountData?.state);
+                        return accountData?.type === requiredAccountType && !isPartiallySetup;
+                    })
+                    .map((formattedPaymentMethod) => ({
+                        text: formattedPaymentMethod?.title ?? '',
+                        description: formattedPaymentMethod?.description ?? '',
+                        icon: formattedPaymentMethod?.icon,
+                        onSelected: () => onPress(CONST.IOU.PAYMENT_TYPE.EXPENSIFY, payAsBusiness, formattedPaymentMethod.methodID, formattedPaymentMethod.accountType),
+                        iconStyles: formattedPaymentMethod?.iconStyles,
+                        iconHeight: formattedPaymentMethod?.iconSize,
+                        iconWidth: formattedPaymentMethod?.iconSize,
+                    }));
+            };
 
             const addBankAccountItem = {
                 text: translate('bankAccount.addBankAccount'),
@@ -190,7 +199,7 @@ function usePaymentOptions({
                     value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
                     backButtonText: translate('iou.individual'),
                     subMenuItems: [
-                        ...(isCurrencySupported ? getPaymentSubitems(false) : []),
+                        ...(isCurrencySupported ? getPaymentSubItems(false) : []),
                         {
                             text: translate('iou.payElsewhere', {formattedAmount: ''}),
                             icon: icons.Cash,
@@ -208,7 +217,7 @@ function usePaymentOptions({
                 value: CONST.IOU.PAYMENT_TYPE.ELSEWHERE,
                 backButtonText: translate('iou.business'),
                 subMenuItems: [
-                    ...(isCurrencySupported ? getPaymentSubitems(true) : []),
+                    ...(isCurrencySupported ? getPaymentSubItems(true) : []),
                     ...(isCurrencySupported ? [addBankAccountItem] : []),
                     {
                         text: translate('iou.payElsewhere', {formattedAmount: ''}),