diff --git a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss
index 3a14dc930a34..4eda7a0b7f31 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss
+++ b/plugins/woocommerce-blocks/assets/js/blocks/cart-checkout-shared/payment-methods/style.scss
@@ -189,6 +189,8 @@
 	.wc-block-components-radio-control__option:first-child,
 	.wc-block-components-radio-control__option:last-child {
 		margin: 0;
+		padding-bottom: em($gap);
+		padding-top: em($gap);
 	}
 
 	.wc-block-components-radio-control__option-checked {
@@ -210,10 +212,6 @@
 	.wc-block-components-radio-control__option {
 		border-width: 0;
 	}
-	.wc-block-components-radio-control-accordion-option {
-		padding-bottom: $gap;
-		padding-top: $gap;
-	}
 
 	.wc-block-components-radio-control-accordion-option:first-child::after {
 		border-top-left-radius: $universal-border-radius;
diff --git a/plugins/woocommerce/changelog/fix-saved-payment-method-styling b/plugins/woocommerce/changelog/fix-saved-payment-method-styling
new file mode 100644
index 000000000000..99d6d507522d
--- /dev/null
+++ b/plugins/woocommerce/changelog/fix-saved-payment-method-styling
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fix
+
+Fix a bug where saved payment methods were not rendered correctly in the heckout block