diff --git a/src/libs/SettlementButtonUtils.ts b/src/libs/SettlementButtonUtils.ts
index 27b3ef2f4f16..2bb122114d86 100644
--- a/src/libs/SettlementButtonUtils.ts
+++ b/src/libs/SettlementButtonUtils.ts
@@ -24,6 +24,7 @@ const useSettlementButtonPaymentMethods = (hasActivatedWallet: boolean, translat
                 text: translate('iou.settleBusiness', ''),
                 icon: icons.Building,
                 value: CONST.PAYMENT_METHODS.BUSINESS_BANK_ACCOUNT,
+                shouldUpdateSelectedIndex: false,
                 key: CONST.PAYMENT_METHODS.BUSINESS_BANK_ACCOUNT,
             },
             [CONST.IOU.PAYMENT_TYPE.ELSEWHERE]: {
diff --git a/tests/unit/SettlementButtonUtilsTest.ts b/tests/unit/SettlementButtonUtilsTest.ts
index 9cdc7f3851ad..c7a43a86b8ed 100644
--- a/tests/unit/SettlementButtonUtilsTest.ts
+++ b/tests/unit/SettlementButtonUtilsTest.ts
@@ -50,6 +50,7 @@ describe('useSettlementButtonPaymentMethods', () => {
             text: translate('iou.settleBusiness', ''),
             icon: icons.current.Building,
             value: CONST.PAYMENT_METHODS.BUSINESS_BANK_ACCOUNT,
+            shouldUpdateSelectedIndex: false,
             key: CONST.PAYMENT_METHODS.BUSINESS_BANK_ACCOUNT,
         });
     });
@@ -116,10 +117,10 @@ describe('useSettlementButtonPaymentMethods', () => {
         }
     });
 
-    it('should only set shouldUpdateSelectedIndex for elsewhere payment type', () => {
+    it('should set shouldUpdateSelectedIndex to false for business bank account and elsewhere payment types', () => {
         const {result} = renderHook(() => useSettlementButtonPaymentMethods(true, translate));
         expect(result.current[CONST.PAYMENT_METHODS.PERSONAL_BANK_ACCOUNT]).not.toHaveProperty('shouldUpdateSelectedIndex');
-        expect(result.current[CONST.PAYMENT_METHODS.BUSINESS_BANK_ACCOUNT]).not.toHaveProperty('shouldUpdateSelectedIndex');
+        expect(result.current[CONST.PAYMENT_METHODS.BUSINESS_BANK_ACCOUNT].shouldUpdateSelectedIndex).toBe(false);
         expect(result.current[CONST.IOU.PAYMENT_TYPE.ELSEWHERE].shouldUpdateSelectedIndex).toBe(false);
     });
 });