diff --git a/src/libs/actions/Search.ts b/src/libs/actions/Search.ts
index 8e34bdd702bb..c54e60de1dbc 100644
--- a/src/libs/actions/Search.ts
+++ b/src/libs/actions/Search.ts
@@ -1427,7 +1427,7 @@ function handleBulkPayItemSelected(params: {
         return;
     }
 
-    if (!isUserValidated) {
+    if (!isUserValidated && item.key !== CONST.IOU.PAYMENT_TYPE.ELSEWHERE) {
         Navigation.navigate(createDynamicRoute(DYNAMIC_ROUTES.VERIFY_ACCOUNT.path));
         return;
     }
diff --git a/tests/unit/Search/handleActionButtonPressTest.ts b/tests/unit/Search/handleActionButtonPressTest.ts
index b32202b5b2a6..03ad47d2c64c 100644
--- a/tests/unit/Search/handleActionButtonPressTest.ts
+++ b/tests/unit/Search/handleActionButtonPressTest.ts
@@ -2,10 +2,11 @@ import type {OnyxEntry} from 'react-native-onyx';
 import Onyx from 'react-native-onyx';
 import type {TransactionReportGroupListItemType} from '@components/Search/SearchList/ListItem/types';
 import {handleActionButtonPress, handleBulkPayItemSelected} from '@libs/actions/Search';
+import createDynamicRoute from '@libs/Navigation/helpers/dynamicRoutesUtils/createDynamicRoute';
 import Navigation from '@libs/Navigation/Navigation';
 import CONST from '@src/CONST';
 import ONYXKEYS from '@src/ONYXKEYS';
-import ROUTES from '@src/ROUTES';
+import ROUTES, {DYNAMIC_ROUTES} from '@src/ROUTES';
 import type {LastPaymentMethod, Policy, Report, SearchResults} from '@src/types/onyx';
 import createRandomPolicy from '../../utils/collections/policies';
 
@@ -498,4 +499,46 @@ describe('handleBulkPayItemSelected', () => {
 
         expect(baseParams.confirmPayment).toHaveBeenCalled();
     });
+
+    it('should not navigate to verify account and should call confirmPayment when user is unvalidated and item is Mark as paid (ELSEWHERE)', async () => {
+        const policy = {
+            ...createRandomPolicy(Number(policyID)),
+            id: policyID,
+            ownerAccountID,
+        } as Policy;
+
+        await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, policy);
+
+        handleBulkPayItemSelected({
+            ...baseParams,
+            policy,
+            amountOwed: 0,
+            isUserValidated: false,
+            item: {key: CONST.IOU.PAYMENT_TYPE.ELSEWHERE, text: 'Pay elsewhere', icon: () => null},
+        });
+
+        expect(Navigation.navigate).not.toHaveBeenCalledWith(createDynamicRoute(DYNAMIC_ROUTES.VERIFY_ACCOUNT.path));
+        expect(baseParams.confirmPayment).toHaveBeenCalled();
+    });
+
+    it('should navigate to verify account when user is unvalidated and item is a bank-funded payment type (VBBA)', async () => {
+        const policy = {
+            ...createRandomPolicy(Number(policyID)),
+            id: policyID,
+            ownerAccountID,
+        } as Policy;
+
+        await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, policy);
+
+        handleBulkPayItemSelected({
+            ...baseParams,
+            policy,
+            amountOwed: 0,
+            isUserValidated: false,
+            item: {key: CONST.IOU.PAYMENT_TYPE.VBBA, text: 'Pay with bank account', icon: () => null},
+        });
+
+        expect(Navigation.navigate).toHaveBeenCalledWith(createDynamicRoute(DYNAMIC_ROUTES.VERIFY_ACCOUNT.path));
+        expect(baseParams.confirmPayment).not.toHaveBeenCalled();
+    });
 });