diff --git a/src/components/MoneyRequestConfirmationList/hooks/useConfirmationValidation.ts b/src/components/MoneyRequestConfirmationList/hooks/useConfirmationValidation.ts
index fe88d1b2c166..721fb0dc8596 100644
--- a/src/components/MoneyRequestConfirmationList/hooks/useConfirmationValidation.ts
+++ b/src/components/MoneyRequestConfirmationList/hooks/useConfirmationValidation.ts
@@ -160,7 +160,7 @@ function useConfirmationValidation({
         const isP2P = !!(firstParticipant?.accountID && !firstParticipant?.isPolicyExpenseChat);
 
         // P2P manual submit: $0 is invalid unless scan/time/distance (same guard as legacy inline confirm).
-        if (iouType !== CONST.IOU.TYPE.PAY && !isScanRequestUtil(transaction) && !isTimeRequest && !isDistanceRequest && iouAmount === 0 && isP2P) {
+        if (!isScanRequestUtil(transaction) && !isTimeRequest && !isDistanceRequest && iouAmount === 0 && isP2P) {
             return {errorKey: 'common.error.invalidAmount'};
         }
         if (isNewManualExpenseFlowEnabled && !transaction?.isAmountSet) {
diff --git a/src/components/MoneyRequestConfirmationList/sections/MerchantField.tsx b/src/components/MoneyRequestConfirmationList/sections/MerchantField.tsx
index 928bf9bb3b73..a09e33d37bf3 100644
--- a/src/components/MoneyRequestConfirmationList/sections/MerchantField.tsx
+++ b/src/components/MoneyRequestConfirmationList/sections/MerchantField.tsx
@@ -9,7 +9,7 @@ import useThemeStyles from '@hooks/useThemeStyles';
 import {clearMoneyRequestMerchant, setMoneyRequestMerchant} from '@libs/actions/IOU';
 import Navigation from '@libs/Navigation/Navigation';
 import {getMerchant, hasReceipt} from '@libs/TransactionUtils';
-import {isValidInputLength} from '@libs/ValidationUtils';
+import {isInvalidMerchantValue, isValidInputLength} from '@libs/ValidationUtils';
 import {setDraftSplitTransaction} from '@userActions/IOU/Split';
 import CONST from '@src/CONST';
 import type {IOUAction, IOUType} from '@src/CONST';
@@ -54,7 +54,7 @@ function MerchantField({
     const [splitDraftTransaction] = useOnyx(`${ONYXKEYS.COLLECTION.SPLIT_TRANSACTION_DRAFT}${transactionID}`);
 
     const merchantValue = getMerchant(transaction);
-    const displayMerchantValue = !transaction?.isMerchantSet ? '' : merchantValue;
+    const displayMerchantValue = isInvalidMerchantValue(merchantValue) ? '' : merchantValue;
     const isMerchantEmpty = !displayMerchantValue;
 
     // Determine if the merchant error should be displayed
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 093c5ae605bd..1867eb8ce144 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -302,6 +302,7 @@ import addTrailingForwardSlash from './UrlUtils';
 import type {AvatarSource} from './UserAvatarUtils';
 import {getDefaultAvatarURL} from './UserAvatarUtils';
 import {generateAccountID} from './UserUtils';
+import {isInvalidMerchantValue} from './ValidationUtils';
 import ViolationsUtils from './Violations/ViolationsUtils';
 
 type AvatarRange = 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18;
@@ -11326,6 +11327,7 @@ function createDraftTransactionAndNavigateToParticipantSelector({
         .find((action) => isMoneyRequestAction(action) && getOriginalMessage(action)?.IOUTransactionID === transactionID);
 
     const {created, amount, currency, merchant, mccGroup} = getTransactionDetails(transaction) ?? {};
+    const isMerchantValid = !isInvalidMerchantValue(merchant);
     const baseComment = getTransactionCommentObject(transaction);
     // Use modifiedAttendees if present (for edited transactions), otherwise use the attendees from comment
     const comment = {
@@ -11345,10 +11347,12 @@ function createDraftTransactionAndNavigateToParticipantSelector({
         modifiedAmount: undefined,
         modifiedCurrency: undefined,
         amount,
+        isAmountSet: true,
         currency,
         comment,
         merchant,
         modifiedMerchant: '',
+        isMerchantSet: !!isMerchantValid,
         modifiedAttendees: undefined,
         mccGroup,
         participants: [],