diff --git a/ocp/rpc/transaction/intent_handler.go b/ocp/rpc/transaction/intent_handler.go
index 7b840ba..3790470 100644
--- a/ocp/rpc/transaction/intent_handler.go
+++ b/ocp/rpc/transaction/intent_handler.go
@@ -779,7 +779,7 @@ func (h *SendPublicPaymentIntentHandler) validateActions(
 
 			// Ensure the destination is the intent mint ATA for the client-provided owner,
 			// if provided. We'll check later if this is absolutely required.
-			var isVmSwapPda bool
+			var isDestinationOwnerVmSwapPda bool
 			if metadata.DestinationOwner != nil {
 				destinationOwner, err := common.NewAccountFromProto(metadata.DestinationOwner)
 				if err != nil {
@@ -797,7 +797,7 @@ func (h *SendPublicPaymentIntentHandler) validateActions(
 
 				_, err = h.data.GetTimelockBySwapPda(ctx, destinationOwner.PublicKey().ToBase58())
 				if err == nil {
-					isVmSwapPda = true
+					isDestinationOwnerVmSwapPda = true
 				} else if err != timelock.ErrTimelockNotFound {
 					return err
 				}
@@ -810,22 +810,27 @@ func (h *SendPublicPaymentIntentHandler) validateActions(
 			}
 
 			// Check whether the destination account is a token account of the same mint that's
-			// been created on the blockchain. If not, a fee is likely required
-			err = validateExternalTokenAccountWithinIntent(ctx, h.data, destination, intentMint)
-			switch err {
-			case nil:
-			default:
-				if !strings.Contains(strings.ToLower(err.Error()), "doesn't exist on the blockchain") {
-					return err
-				}
-
-				if metadata.DestinationOwner == nil {
-					return NewIntentValidationError("destination owner account is required to derive ata")
-				}
-
-				// Only VM swap PDAs are subsidized by server
-				if !simResult.HasAnyFeePayments() && !isVmSwapPda {
-					return NewIntentValidationErrorf("%s fee payment is required", transactionpb.FeePaymentAction_CREATE_ON_SEND_WITHDRAWAL.String())
+			// been created on the blockchain. If not, a fee is likely required.
+			//
+			// Note: We can skip these checks for VM swap ATAs because the account is already
+			// validated, and no fee payment is required.
+			if !isDestinationOwnerVmSwapPda {
+				err = validateExternalTokenAccountWithinIntent(ctx, h.data, destination, intentMint)
+				switch err {
+				case nil:
+				default:
+					if !strings.Contains(strings.ToLower(err.Error()), "doesn't exist on the blockchain") {
+						return err
+					}
+
+					if metadata.DestinationOwner == nil {
+						return NewIntentValidationError("destination owner account is required to derive ata")
+					}
+
+					// Only VM swap ATAs are subsidized by server
+					if !simResult.HasAnyFeePayments() && !isDestinationOwnerVmSwapPda {
+						return NewIntentValidationErrorf("%s fee payment is required", transactionpb.FeePaymentAction_CREATE_ON_SEND_WITHDRAWAL.String())
+					}
 				}
 			}