Ensure only latest bank account shows default badge

src/ONYXKEYS.ts

@@ -247,6 +247,9 @@ const ONYXKEYS = {
     /** User's Expensify Wallet */
     USER_WALLET: 'userWallet',
 
+    /** The method ID of the latest added payment method */
+    LATEST_ADDED_BANK_ACCOUNT_PLAID_ID: 'latestAddedBankAccountPlaidID',
+
     /** User's metadata that will be used to segmentation */
     USER_METADATA: 'userMetadata',
 
@@ -947,6 +950,7 @@ type OnyxValuesMapping = {
     [ONYXKEYS.NVP_PRIVATE_BILLING_DISPUTE_PENDING]: number;
     [ONYXKEYS.NVP_PRIVATE_BILLING_STATUS]: OnyxTypes.BillingStatus;
     [ONYXKEYS.USER_WALLET]: OnyxTypes.UserWallet;
+    [ONYXKEYS.LATEST_ADDED_BANK_ACCOUNT_PLAID_ID]: string;
     [ONYXKEYS.WALLET_ONFIDO]: OnyxTypes.WalletOnfido;
     [ONYXKEYS.WALLET_ADDITIONAL_DETAILS]: OnyxTypes.WalletAdditionalDetails;
     [ONYXKEYS.WALLET_TERMS]: OnyxTypes.WalletTerms;

src/libs/actions/BankAccounts.ts

@@ -237,6 +237,11 @@ function addPersonalBankAccount(account: PlaidBankAccount) {
                     currentStep: CONST.WALLET.STEP.ADDITIONAL_DETAILS,
                 },
             },
+            {
+                onyxMethod: Onyx.METHOD.SET,
+                key: ONYXKEYS.LATEST_ADDED_BANK_ACCOUNT_PLAID_ID,
+                value: account.plaidAccountID,
+            },
         ],
         failureData: [
             {

src/pages/settings/Wallet/PaymentMethodList.tsx

@@ -147,11 +147,18 @@ function dismissError(item: PaymentMethodItem) {
     }
 }
 
-function shouldShowDefaultBadge(filteredPaymentMethods: PaymentMethod[], isDefault = false): boolean {
+function shouldShowDefaultBadge(filteredPaymentMethods: PaymentMethod[], item: PaymentMethod, latestAddedBankAccountPlaidID = '', isDefault = false): boolean {
     if (!isDefault) {
         return false;
     }
+    // Find all payment methods that are marked as default
+    const defaultPaymentMethods = filteredPaymentMethods.filter((method): method is PaymentMethod => !!method.isDefault);
 
+    // If there are two or more default payment methods, show the default badge only for the most recently added default account.
+    if (defaultPaymentMethods.length > 1) {
+        // Return true only if the methodID matches the most recently created default account
+        return item.accountData?.additionalData?.plaidAccountID === latestAddedBankAccountPlaidID;
+    }
     const defaultablePaymentMethodCount = filteredPaymentMethods.filter(
         (method) => method.accountType === CONST.PAYMENT_METHODS.PERSONAL_BANK_ACCOUNT || method.accountType === CONST.PAYMENT_METHODS.DEBIT_CARD,
     ).length;
@@ -194,6 +201,7 @@ function PaymentMethodList({
 
     const [isUserValidated] = useOnyx(ONYXKEYS.USER, {selector: (user) => !!user?.validated});
     const [bankAccountList = {}, bankAccountListResult] = useOnyx(ONYXKEYS.BANK_ACCOUNT_LIST);
+    const [latestAddedBankAccountPlaidID] = useOnyx(ONYXKEYS.LATEST_ADDED_BANK_ACCOUNT_PLAID_ID);
     const isLoadingBankAccountList = isLoadingOnyxValue(bankAccountListResult);
     const [cardList = {}, cardListResult] = useOnyx(ONYXKEYS.CARD_LIST);
     const isLoadingCardList = isLoadingOnyxValue(cardListResult);
@@ -404,7 +412,12 @@ function PaymentMethodList({
                     iconWidth={item.iconWidth ?? item.iconSize}
                     iconStyles={item.iconStyles}
                     badgeText={
-                        shouldShowDefaultBadge(filteredPaymentMethods, invoiceTransferBankAccountID ? invoiceTransferBankAccountID === item.methodID : item.isDefault)
+                        shouldShowDefaultBadge(
+                            filteredPaymentMethods,
+                            item,
+                            latestAddedBankAccountPlaidID,
+                            invoiceTransferBankAccountID ? invoiceTransferBankAccountID === item.methodID : item.isDefault,
+                        )
                             ? translate('paymentMethodList.defaultPaymentMethod')
                             : undefined
                     }
@@ -421,7 +434,18 @@ function PaymentMethodList({
             </OfflineWithFeedback>
         ),
 
-        [styles.ph6, styles.paymentMethod, styles.badgeBordered, filteredPaymentMethods, invoiceTransferBankAccountID, translate, listItemStyle, shouldShowSelectedState, selectedMethodID],
+        [
+            styles.ph6,
+            styles.paymentMethod,
+            styles.badgeBordered,
+            filteredPaymentMethods,
+            invoiceTransferBankAccountID,
+            translate,
+            listItemStyle,
+            shouldShowSelectedState,
+            selectedMethodID,
+            latestAddedBankAccountPlaidID,
+        ],
     );
 
     return (