diff --git a/changelog/fix-WOOPMNT-5223-activate-payments-notice-on-live-account b/changelog/fix-WOOPMNT-5223-activate-payments-notice-on-live-account
new file mode 100644
index 00000000000..1893bef6acb
--- /dev/null
+++ b/changelog/fix-WOOPMNT-5223-activate-payments-notice-on-live-account
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fix
+
+Show Activate payments notice in WooPayments Settings only for test accounts.
diff --git a/includes/admin/class-wc-payments-admin-settings.php b/includes/admin/class-wc-payments-admin-settings.php
index 13cdc367a60..494fe5d9839 100644
--- a/includes/admin/class-wc-payments-admin-settings.php
+++ b/includes/admin/class-wc-payments-admin-settings.php
@@ -17,6 +17,13 @@ class WC_Payments_Admin_Settings {
 	 */
 	private $gateway;
 
+	/**
+	 * Instance of WC_Payments_Account
+	 *
+	 * @var WC_Payments_Account
+	 */
+	private $account;
+
 	/**
 	 * Set of parameters to build the URL to the gateway's settings page.
 	 *
@@ -32,9 +39,11 @@ class WC_Payments_Admin_Settings {
 	 * Initialize class actions.
 	 *
 	 * @param WC_Payment_Gateway_WCPay $gateway Payment Gateway.
+	 * @param WC_Payments_Account      $account The account service.
 	 */
-	public function __construct( WC_Payment_Gateway_WCPay $gateway ) {
+	public function __construct( WC_Payment_Gateway_WCPay $gateway, WC_Payments_Account $account ) {
 		$this->gateway = $gateway;
+		$this->account = $account;
 	}
 
 	/**
@@ -43,44 +52,132 @@ public function __construct( WC_Payment_Gateway_WCPay $gateway ) {
 	 * @return void
 	 */
 	public function init_hooks() {
-		add_action( 'woocommerce_woocommerce_payments_admin_notices', [ $this, 'display_test_mode_notice' ] );
+		add_action( 'woocommerce_woocommerce_payments_admin_notices', [ $this, 'maybe_show_test_mode_notice' ] );
+		add_action( 'woocommerce_woocommerce_payments_admin_notices', [ $this, 'maybe_show_test_account_notice' ] );
+		add_action( 'woocommerce_woocommerce_payments_admin_notices', [ $this, 'maybe_show_sandbox_account_notice' ] );
 		add_filter( 'plugin_action_links_' . plugin_basename( WCPAY_PLUGIN_FILE ), [ $this, 'add_plugin_links' ] );
 	}
 
 	/**
-	 * Add notice explaining test mode when it's enabled.
+	 * Add notice about payments being in test mode when using a live account.
+	 *
+	 * This notice is mutually exclusive with the test account and sandbox account notices.
+	 *
+	 * @see self::maybe_show_test_account_notice()
+	 * @see self::maybe_show_sandbox_account_notice()
 	 */
-	public function display_test_mode_notice() {
-		if ( WC_Payments::mode()->is_test() ) {
-			?>
-			<div id="wcpay-test-mode-notice" class="notice notice-warning">
-				<p>
-					<b><?php esc_html_e( 'You are using a test account. ', 'woocommerce-payments' ); ?></b>
+	public function maybe_show_test_mode_notice() {
+		// If there is no valid account connected, bail.
+		if ( ! $this->gateway->is_connected() || ! $this->account->is_stripe_account_valid() ) {
+			return;
+		}
+
+		// If this is not a live account, bail since we will inform the user about the test account instead.
+		if ( ! $this->account->get_is_live() ) {
+			return;
+		}
+
+		// If the test mode is not enabled, bail.
+		if ( ! WC_Payments::mode()->is_test() ) {
+			return;
+		}
+
+		// Output the notice.
+		?>
+		<div id="wcpay-test-mode-notice" class="notice notice-warning">
+			<p>
+				<b>
 					<?php
 						printf(
-							wp_kses_post(
-								/* translators: %s: URL to learn more */
-								__( 'Provide additional details about your business so you can begin accepting real payments. <a href="%s" target="_blank" rel="noreferrer noopener">Learn more</a>', 'woocommerce-payments' ),
-							),
-							esc_url( 'https://woocommerce.com/document/woopayments/startup-guide/#sign-up-process' )
+							/* translators: %s: WooPayments */
+							esc_html__( '%s is in test mode — all transactions are simulated!', 'woocommerce-payments' ) . ' ',
+							'WooPayments'
 						);
 					?>
-				</p>
+				</b>
+				<?php
+					printf(
+						/* translators: 1: Anchor opening tag; 2: Anchor closing tag */
+						esc_html__( 'You can use %1$stest card numbers%2$s to simulate various types of transactions.', 'woocommerce-payments' ),
+						'<a href="' . esc_url( 'https://woocommerce.com/document/woopayments/testing-and-troubleshooting/testing/#test-cards' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>'
+					);
+				?>
+			</p>
+		</div>
+		<?php
+	}
+
+	/**
+	 * Add notice to activate payments when a test account is in use.
+	 *
+	 * This notice is mutually exclusive with the test mode and sandbox account notices.
+	 *
+	 * @see self::maybe_show_test_mode_notice()
+	 * @see self::maybe_show_sandbox_account_notice()
+	 */
+	public function maybe_show_test_account_notice() {
+		// If there is no valid account connected, bail.
+		if ( ! $this->gateway->is_connected() || ! $this->account->is_stripe_account_valid() ) {
+			return;
+		}
+
+		// If this is a live account, bail.
+		if ( $this->account->get_is_live() ) {
+			return;
+		}
+
+		// If this is NOT a test [drive] account, bail.
+		$account_status = $this->account->get_account_status_data();
+		if ( empty( $account_status['testDrive'] ) ) {
+			return;
+		}
+
+		// Output the notice.
+		?>
+		<div id="wcpay-test-account-notice" class="notice notice-warning">
+			<p>
+				<b><?php echo esc_html__( 'You are using a test account.', 'woocommerce-payments' ) . ' '; ?></b>
+				<?php
+				if ( ! WC_Payments::mode()->is_dev() ) {
+					printf(
+						/* translators: %s: URL to learn more */
+						esc_html__( 'Provide additional details about your business so you can begin accepting real payments. %1$sLearn more%2$s', 'woocommerce-payments' ),
+						'<a href="' . esc_url( 'https://woocommerce.com/document/woopayments/startup-guide/#sign-up-process' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>'
+					);
+				} else {
+					esc_html_e( '⚠️ Development mode is enabled for the store! There can be no live onboarding process while using development, testing, or staging WordPress environments!', 'woocommerce-payments' );
+					echo '</br>';
+					printf(
+					/* translators: 1: Anchor opening tag; 2: Anchor closing tag; 3: Anchor opening tag; 4: Anchor closing tag */
+						esc_html__( 'To begin accepting real payments, please go to the live store or change your %1$sWordPress environment%2$s to a production one. %3$sLearn more%4$s', 'woocommerce-payments' ),
+						'<a href="' . esc_url( 'https://make.wordpress.org/core/2020/08/27/wordpress-environment-types/' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>',
+						'<a href="' . esc_url( 'https://woocommerce.com/document/woopayments/testing-and-troubleshooting/test-accounts/#developer-notes' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>'
+					);
+				}
+				?>
+			</p>
+			<?php if ( ! WC_Payments::mode()->is_dev() ) { ?>
 				<p>
 					<a id="wcpay-activate-payments-button" href="#" class="button button-secondary">
 						<?php esc_html_e( 'Activate payments', 'woocommerce-payments' ); ?>
 					</a>
 				</p>
-			</div>
+			<?php } ?>
+		</div>
+		<?php if ( ! WC_Payments::mode()->is_dev() ) { ?>
 			<script type="text/javascript">
 				// We dispatch an event to trigger the modal.
 				// The listener is in the general-settings/index.js file.
-				document.addEventListener( 'DOMContentLoaded', function() {
+				document.addEventListener( 'DOMContentLoaded', function () {
 					var activateButton = document.getElementById( 'wcpay-activate-payments-button' );
-					if ( ! activateButton ) {
+					if ( !activateButton ) {
 						return;
 					}
-					activateButton.addEventListener( 'click', function( e ) {
+					activateButton.addEventListener( 'click', function ( e ) {
 						e.preventDefault();
 						document.dispatchEvent( new CustomEvent( 'wcpay:activate_payments' ) );
 					} );
@@ -90,6 +187,64 @@ public function display_test_mode_notice() {
 		}
 	}
 
+	/**
+	 * Add notice to inform that a sandbox account is in use.
+	 *
+	 * This notice is mutually exclusive with the test mode and test account notices.
+	 *
+	 * @see self::maybe_show_test_mode_notice()
+	 * @see self::maybe_show_test_account_notice()
+	 */
+	public function maybe_show_sandbox_account_notice() {
+		// If there is no valid account connected, bail.
+		if ( ! $this->gateway->is_connected() || ! $this->account->is_stripe_account_valid() ) {
+			return;
+		}
+
+		// If this is a live account, bail.
+		if ( $this->account->get_is_live() ) {
+			return;
+		}
+
+		// If this is a test [drive] account, bail.
+		$account_status = $this->account->get_account_status_data();
+		if ( ! empty( $account_status['testDrive'] ) ) {
+			return;
+		}
+
+		// Output the notice.
+		?>
+		<div id="wcpay-test-account-notice" class="notice notice-warning">
+			<p>
+				<b><?php echo esc_html__( 'You are using a sandbox test account.', 'woocommerce-payments' ) . ' '; ?></b>
+				<?php
+				if ( ! WC_Payments::mode()->is_dev() ) {
+					printf(
+					/* translators: 1: Anchor opening tag; 2: Anchor closing tag; 3: Anchor opening tag; 4: Anchor closing tag */
+						esc_html__( 'To begin accepting real payments you will need to first %1$sreset your account%2$s and, then, provide additional details about your business. %3$sLearn more%4$s', 'woocommerce-payments' ),
+						'<a href="' . esc_url( 'https://woocommerce.com/document/woopayments/startup-guide/#resetting' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>',
+						'<a href="' . esc_url( 'https://woocommerce.com/document/woopayments/startup-guide/#sign-up-process' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>',
+					);
+				} else {
+					esc_html_e( '⚠️ Development mode is enabled for the store! There can be no live onboarding process while using development, testing, or staging WordPress environments!', 'woocommerce-payments' );
+					echo '</br>';
+					printf(
+					/* translators: 1: Anchor opening tag; 2: Anchor closing tag; 3: Anchor opening tag; 4: Anchor closing tag */
+						esc_html__( 'To begin accepting real payments, please go to the live store or change your %1$sWordPress environment%2$s to a production one. %3$sLearn more%4$s', 'woocommerce-payments' ),
+						'<a href="' . esc_url( 'https://make.wordpress.org/core/2020/08/27/wordpress-environment-types/' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>',
+						'<a href="' . esc_url( 'https://woocommerce.com/document/woopayments/testing-and-troubleshooting/test-accounts/#developer-notes' ) . '" target="_blank" rel="noreferrer noopener">',
+						'</a>'
+					);
+				}
+				?>
+			</p>
+		</div>
+		<?php
+	}
+
 	/**
 	 * Adds links to the plugin's row in the "Plugins" Wp-Admin page.
 	 *
diff --git a/includes/class-wc-payments.php b/includes/class-wc-payments.php
index a551054e662..84020814e30 100644
--- a/includes/class-wc-payments.php
+++ b/includes/class-wc-payments.php
@@ -750,7 +750,7 @@ function () {
 			);
 			$admin->init_hooks();
 
-			$admin_settings = new WC_Payments_Admin_Settings( self::get_gateway() );
+			$admin_settings = new WC_Payments_Admin_Settings( self::get_gateway(), self::get_account_service() );
 			$admin_settings->init_hooks();
 
 			// Use tracks loader only in admin screens because it relies on WC_Tracks loaded by WC_Admin.
diff --git a/tests/unit/admin/test-class-wc-payments-admin-settings.php b/tests/unit/admin/test-class-wc-payments-admin-settings.php
index 9955800c167..aa104a5bcd6 100644
--- a/tests/unit/admin/test-class-wc-payments-admin-settings.php
+++ b/tests/unit/admin/test-class-wc-payments-admin-settings.php
@@ -33,27 +33,454 @@ public function set_up() {
 			->disableOriginalConstructor()
 			->getMock();
 
-		$this->payments_admin_settings = new WC_Payments_Admin_Settings( $this->mock_gateway );
+		$this->mock_account = $this->getMockBuilder( WC_Payments_Account::class )
+			->disableOriginalConstructor()
+			->getMock();
+
+		$this->payments_admin_settings = new WC_Payments_Admin_Settings( $this->mock_gateway, $this->mock_account );
 	}
 
-	public function test_it_hides_test_mode_notice() {
+	public function test_it_does_not_show_test_mode_notice_when_not_connected() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( false );
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_mode_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'WooPayments is in test mode.', $result );
+	}
+
+	public function test_it_does_not_show_test_mode_notice_when_stripe_account_is_invalid() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( false );
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_mode_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'WooPayments is in test mode.', $result );
+	}
+
+	public function test_it_hides_test_mode_notice_for_live_account() {
+		// Arrange.
 		WC_Payments::mode()->live();
 
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( true );
+
+		// Act.
 		ob_start();
-		$this->payments_admin_settings->display_test_mode_notice();
+		$this->payments_admin_settings->maybe_show_test_mode_notice();
 		$result = ob_get_clean();
 
-		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+		// Assert.
+		$this->assertStringNotContainsString( 'WooPayments is in test mode.', $result );
+	}
+
+	public function test_it_hides_test_mode_notice_for_test_account() {
+		// Arrange.
+		WC_Payments::mode()->live();
+
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( false );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => false,
+					'testDrive' => true,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_mode_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'WooPayments is in test mode.', $result );
 	}
 
-	public function test_it_renders_test_mode_notice() {
+	public function test_it_hides_test_mode_notice_for_sandbox_account() {
+		// Arrange.
+		WC_Payments::mode()->live();
+
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( false );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => false,
+					'testDrive' => false,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_mode_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'WooPayments is in test mode.', $result );
+	}
+
+	public function test_it_renders_test_mode_notice_for_live_account() {
+		// Arrange.
 		WC_Payments::mode()->test();
 
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => true,
+					'testDrive' => false,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_mode_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringContainsStringIgnoringCase( 'WooPayments is in test mode', $result );
+		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+		$this->assertStringNotContainsString( 'You are using a sandbox test account.', $result );
+	}
+
+	public function test_does_not_show_test_account_notice_when_not_connected() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( false );
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+	}
+
+	public function test_it_hides_test_account_notice_for_invalid_stripe_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( false );
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+	}
+
+	public function test_it_hides_test_account_notice_for_live_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => true,
+					'testDrive' => false,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+	}
+
+	public function test_it_hides_test_account_notice_for_sandbox_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => false,
+					'testDrive' => false,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+	}
+
+	public function test_it_renders_test_account_notice_for_test_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( false );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => false,
+					'testDrive' => true,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_test_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringContainsString( 'You are using a test account.', $result );
+		$this->assertStringNotContainsString( 'WooPayments is in test mode', $result );
+		$this->assertStringNotContainsString( 'You are using a sandbox test account.', $result );
+	}
+
+	public function test_it_does_not_show_sandbox_account_notice_when_not_connected() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( false );
+
+		// Act.
 		ob_start();
-		$this->payments_admin_settings->display_test_mode_notice();
+		$this->payments_admin_settings->maybe_show_sandbox_account_notice();
 		$result = ob_get_clean();
 
-		$this->assertStringContainsStringIgnoringCase( 'You are using a test account.', $result );
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a sandbox test account.', $result );
+	}
+
+	public function test_it_hides_sandbox_account_notice_for_invalid_stripe_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( false );
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_sandbox_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a sandbox test account.', $result );
+	}
+
+	public function test_it_hides_sandbox_account_notice_for_live_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => true,
+					'testDrive' => false,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_sandbox_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a sandbox test account.', $result );
+	}
+
+	public function test_it_hides_sandbox_account_notice_for_test_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => false,
+					'testDrive' => true,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_sandbox_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringNotContainsString( 'You are using a sandbox test account.', $result );
+	}
+
+	public function test_it_renders_sandbox_account_notice_for_sandbox_account() {
+		// Arrange.
+		$this->mock_gateway
+			->expects( $this->any() )
+			->method( 'is_connected' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'is_stripe_account_valid' )
+			->willReturn( true );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_is_live' )
+			->willReturn( false );
+		$this->mock_account
+			->expects( $this->any() )
+			->method( 'get_account_status_data' )
+			->willReturn(
+				[
+					'isLive'    => false,
+					'testDrive' => false,
+				]
+			);
+
+		// Act.
+		ob_start();
+		$this->payments_admin_settings->maybe_show_sandbox_account_notice();
+		$result = ob_get_clean();
+
+		// Assert.
+		$this->assertStringContainsString( 'You are using a sandbox test account.', $result );
+		$this->assertStringNotContainsString( 'You are using a test account.', $result );
+		$this->assertStringNotContainsString( 'WooPayments is in test mode', $result );
 	}
 
 	public function test_it_adds_plugin_links() {