diff --git a/src/CONST.ts b/src/CONST.ts
index 2e2608d773ae..d93158e3088c 100755
--- a/src/CONST.ts
+++ b/src/CONST.ts
@@ -2335,6 +2335,7 @@ const CONST = {
         PRIVATE_NOTES: 'privateNotes',
         DELETE: 'delete',
         MARK_AS_INCOMPLETE: 'markAsIncomplete',
+        CANCEL_PAYMENT: 'cancelPayment',
         UNAPPROVE: 'unapprove',
     },
     EDIT_REQUEST_FIELD: {
diff --git a/src/components/MoneyReportHeader.tsx b/src/components/MoneyReportHeader.tsx
index 80ad2890afaa..6777bbf6c269 100644
--- a/src/components/MoneyReportHeader.tsx
+++ b/src/components/MoneyReportHeader.tsx
@@ -99,7 +99,6 @@ function MoneyReportHeader({policy, report: moneyRequestReport, transactionThrea
     const canAllowSettlement = ReportUtils.hasUpdatedTotal(moneyRequestReport, policy);
     const policyType = policy?.type;
     const isDraft = ReportUtils.isOpenExpenseReport(moneyRequestReport);
-    const [isConfirmModalVisible, setIsConfirmModalVisible] = useState(false);
 
     const navigateBackToAfterDelete = useRef<Route>();
     const hasScanningReceipt = ReportUtils.getTransactionsWithReceipts(moneyRequestReport?.reportID).some((t) => TransactionUtils.isReceiptBeingScanned(t));
@@ -108,14 +107,6 @@ function MoneyReportHeader({policy, report: moneyRequestReport, transactionThrea
     // allTransactions in TransactionUtils might have stale data
     const hasOnlyHeldExpenses = ReportUtils.hasOnlyHeldExpenses(moneyRequestReport.reportID, transactions);
 
-    const cancelPayment = useCallback(() => {
-        if (!chatReport) {
-            return;
-        }
-        IOU.cancelPayment(moneyRequestReport, chatReport);
-        setIsConfirmModalVisible(false);
-    }, [moneyRequestReport, chatReport]);
-
     const shouldShowPayButton = useMemo(() => IOU.canIOUBePaid(moneyRequestReport, chatReport, policy), [moneyRequestReport, chatReport, policy]);
 
     const shouldShowApproveButton = useMemo(() => IOU.canApproveIOU(moneyRequestReport, chatReport, policy), [moneyRequestReport, chatReport, policy]);
@@ -371,17 +362,6 @@ function MoneyReportHeader({policy, report: moneyRequestReport, transactionThrea
                     transactionCount={transactionIDs.length}
                 />
             )}
-            <ConfirmModal
-                title={translate('iou.cancelPayment')}
-                isVisible={isConfirmModalVisible}
-                onConfirm={cancelPayment}
-                onCancel={() => setIsConfirmModalVisible(false)}
-                prompt={translate('iou.cancelPaymentConfirmation')}
-                confirmText={translate('iou.cancelPayment')}
-                cancelText={translate('common.dismiss')}
-                danger
-                shouldEnableNewFocusManagement
-            />
             <ConfirmModal
                 title={translate('iou.deleteExpense')}
                 isVisible={isDeleteRequestModalVisible}
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index ade0a3b56ac8..8c2b71f9b0ea 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -6588,7 +6588,11 @@ function submitReport(expenseReport: OnyxTypes.Report) {
     API.write(WRITE_COMMANDS.SUBMIT_REPORT, parameters, {optimisticData, successData, failureData});
 }
 
-function cancelPayment(expenseReport: OnyxTypes.Report, chatReport: OnyxTypes.Report) {
+function cancelPayment(expenseReport: OnyxEntry<OnyxTypes.Report>, chatReport: OnyxTypes.Report) {
+    if (isEmptyObject(expenseReport)) {
+        return;
+    }
+
     const optimisticReportAction = ReportUtils.buildOptimisticCancelPaymentReportAction(expenseReport.reportID, -(expenseReport.total ?? 0), expenseReport.currency ?? '');
     const policy = PolicyUtils.getPolicy(chatReport.policyID);
     const isFree = policy && policy.type === CONST.POLICY.TYPE.FREE;
diff --git a/src/pages/ReportDetailsPage.tsx b/src/pages/ReportDetailsPage.tsx
index 2939c64ca958..d36761703d01 100644
--- a/src/pages/ReportDetailsPage.tsx
+++ b/src/pages/ReportDetailsPage.tsx
@@ -109,6 +109,7 @@ function ReportDetailsPage({policies, report, session, personalDetails}: ReportD
     const [isLastMemberLeavingGroupModalVisible, setIsLastMemberLeavingGroupModalVisible] = useState(false);
     const [isDeleteModalVisible, setIsDeleteModalVisible] = useState(false);
     const [isUnapproveModalVisible, setIsUnapproveModalVisible] = useState(false);
+    const [isConfirmModalVisible, setIsConfirmModalVisible] = useState(false);
     const policy = useMemo(() => policies?.[`${ONYXKEYS.COLLECTION.POLICY}${report?.policyID ?? '-1'}`], [policies, report?.policyID]);
     const isPolicyAdmin = useMemo(() => PolicyUtils.isPolicyAdmin(policy), [policy]);
     const isPolicyEmployee = useMemo(() => PolicyUtils.isPolicyEmployee(report?.policyID ?? '-1', policies), [report?.policyID, policies]);
@@ -263,6 +264,21 @@ function ReportDetailsPage({policies, report, session, personalDetails}: ReportD
     const shouldShowWriteCapability = !isMoneyRequestReport;
     const shouldShowMenuItem = shouldShowNotificationPref || shouldShowWriteCapability || (!!report?.visibility && report.chatType !== CONST.REPORT.CHAT_TYPE.INVOICE);
 
+    const isPayer = ReportUtils.isPayer(session, moneyRequestReport);
+    const isSettled = ReportUtils.isSettled(moneyRequestReport?.reportID ?? '-1');
+
+    const shouldShowCancelPaymentButton = caseID === CASES.MONEY_REPORT && isPayer && isSettled && ReportUtils.isExpenseReport(moneyRequestReport);
+    const [chatReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${moneyRequestReport?.chatReportID ?? '-1'}`);
+
+    const cancelPayment = useCallback(() => {
+        if (!chatReport) {
+            return;
+        }
+
+        IOU.cancelPayment(moneyRequestReport, chatReport);
+        setIsConfirmModalVisible(false);
+    }, [moneyRequestReport, chatReport]);
+
     const menuItems: ReportDetailsPageMenuItem[] = useMemo(() => {
         const items: ReportDetailsPageMenuItem[] = [];
 
@@ -356,6 +372,16 @@ function ReportDetailsPage({policies, report, session, personalDetails}: ReportD
             }
         }
 
+        if (shouldShowCancelPaymentButton) {
+            items.push({
+                key: CONST.REPORT_DETAILS_MENU_ITEM.CANCEL_PAYMENT,
+                icon: Expensicons.Trashcan,
+                translationKey: 'iou.cancelPayment',
+                isAnonymousAction: false,
+                action: () => setIsConfirmModalVisible(true),
+            });
+        }
+
         if (shouldShowLeaveButton) {
             items.push({
                 key: CONST.REPORT_DETAILS_MENU_ITEM.LEAVE_ROOM,
@@ -403,6 +429,7 @@ function ReportDetailsPage({policies, report, session, personalDetails}: ReportD
         isCanceledTaskReport,
         shouldShowLeaveButton,
         activeChatMembers.length,
+        shouldShowCancelPaymentButton,
         isPolicyAdmin,
         session,
         leaveChat,
@@ -710,6 +737,17 @@ function ReportDetailsPage({policies, report, session, personalDetails}: ReportD
                     confirmText={translate('common.leave')}
                     cancelText={translate('common.cancel')}
                 />
+                <ConfirmModal
+                    title={translate('iou.cancelPayment')}
+                    isVisible={isConfirmModalVisible}
+                    onConfirm={cancelPayment}
+                    onCancel={() => setIsConfirmModalVisible(false)}
+                    prompt={translate('iou.cancelPaymentConfirmation')}
+                    confirmText={translate('iou.cancelPayment')}
+                    cancelText={translate('common.dismiss')}
+                    danger
+                    shouldEnableNewFocusManagement
+                />
                 <ConfirmModal
                     title={caseID === CASES.DEFAULT ? translate('task.deleteTask') : translate('iou.deleteExpense')}
                     isVisible={isDeleteModalVisible}