diff --git a/frontend/src/common/constants/validation_messages.json b/frontend/src/common/constants/validation_messages.json
index 96ea80bb9..d6d6668c6 100644
--- a/frontend/src/common/constants/validation_messages.json
+++ b/frontend/src/common/constants/validation_messages.json
@@ -163,7 +163,7 @@
   "transactionId": {
     "defaultMessage": "Invalid transaction ID",
     "length": {
-      "messageTemplate": "Transaction ID length must be no longer than :max characters",
+      "messageTemplate": "Maximum :max characters",
       "placeholders": [":max"]
     }
   }
diff --git a/frontend/src/features/permits/pages/Refund/RefundPage.tsx b/frontend/src/features/permits/pages/Refund/RefundPage.tsx
index d741d7a2c..cbb8ed83a 100644
--- a/frontend/src/features/permits/pages/Refund/RefundPage.tsx
+++ b/frontend/src/features/permits/pages/Refund/RefundPage.tsx
@@ -69,8 +69,15 @@ const transactionIdRules = {
         requiredMessage()
       );
     },
-    validateTransactionId: (value: Optional<string>) => {
-      return (value && value.length <= 15) || invalidTranactionIdLength(15);
+    validateTransactionId: (
+      value: Optional<string>,
+      formValues: RefundFormData,
+    ) => {
+      return (
+        !formValues.shouldUsePrevPaymentMethod ||
+        (value && value.length <= 15) ||
+        invalidTranactionIdLength(15)
+      );
     },
   },
 };
@@ -210,6 +217,7 @@ export const RefundPage = ({
     const usePrev = shouldUsePrev === "true";
     setShouldUsePrevPaymentMethod(usePrev);
     setValue("refundOnlineMethod", usePrev ? getRefundOnlineMethod() : "");
+    setValue("transactionId", "");
     clearErrors("transactionId");
   };
 
@@ -227,6 +235,7 @@ export const RefundPage = ({
     e: React.ChangeEvent<HTMLInputElement>,
   ) => {
     const formattedValue = filterNonNumericValue(e.target.value);
+    handleRefundMethodChange("true");
     setValue("transactionId", formattedValue, { shouldValidate: true });
   };