diff --git a/electrum/gui/qt/paytoedit.py b/electrum/gui/qt/paytoedit.py
index 23c26faca..7afed1fe8 100644
--- a/electrum/gui/qt/paytoedit.py
+++ b/electrum/gui/qt/paytoedit.py
@@ -68,9 +68,21 @@ class PayToEdit(CompletionTextEdit, ScanQRTextEdit, Logger):
         self.win = win
         self.amount_edit = win.amount_e
         self.setFont(QFont(MONOSPACE_FONT))
-        self.document().contentsChanged.connect(self.update_size)
-        self.heightMin = 0
-        self.heightMax = 150
+        document = self.document()
+        document.contentsChanged.connect(self.update_size)
+
+        fontMetrics = QFontMetrics(document.defaultFont())
+        self.fontSpacing = fontMetrics.lineSpacing()
+
+        margins = self.contentsMargins()
+        documentMargin = document.documentMargin()
+        self.verticalMargins = margins.top() + margins.bottom()
+        self.verticalMargins += self.frameWidth() * 2
+        self.verticalMargins += documentMargin * 2
+
+        self.heightMin = self.fontSpacing + self.verticalMargins
+        self.heightMax = (self.fontSpacing * 10) + self.verticalMargins
+
         self.c = None
         self.textChanged.connect(self.check_text)
         self.outputs = []  # type: List[PartialTxOutput]
@@ -248,13 +260,21 @@ class PayToEdit(CompletionTextEdit, ScanQRTextEdit, Logger):
         self.update_size()
 
     def update_size(self):
-        lineHeight = QFontMetrics(self.document().defaultFont()).height()
-        docHeight = self.document().size().height()
-        h = round(docHeight * lineHeight + 11)
+        docLineCount = self.document().lineCount()
+        if self.cursorRect().right() + 1 >= self.overlay_widget.pos().x():
+            # Add a line if we are under the overlay widget
+            docLineCount += 1
+        docHeight = docLineCount * self.fontSpacing
+
+        h = docHeight + self.verticalMargins
         h = min(max(h, self.heightMin), self.heightMax)
-        self.setMinimumHeight(h)
-        self.setMaximumHeight(h)
-        self.verticalScrollBar().hide()
+        self.setMinimumHeight(int(h))
+        self.setMaximumHeight(int(h))
+
+        self.verticalScrollBar().setHidden(docHeight + self.verticalMargins < self.heightMax)
+
+        # The scrollbar visibility can have changed so we update the overlay position here
+        self._updateOverlayPos()
 
     def resolve(self):
         self.is_alias = False
diff --git a/electrum/gui/qt/util.py b/electrum/gui/qt/util.py
index ce42d7db6..1b3b6635f 100644
--- a/electrum/gui/qt/util.py
+++ b/electrum/gui/qt/util.py
@@ -832,12 +832,12 @@ class MySortModel(QSortFilterProxyModel):
 
 class OverlayControlMixin:
     STYLE_SHEET_COMMON = '''
-    QWidget { background-color: transparent; }
-    QToolButton { border-width: 1px; padding: 0px; margin: 0px; }
+    QPushButton { border-width: 1px; padding: 0px; margin: 0px; }
     '''
 
     STYLE_SHEET_LIGHT = '''
-    QToolButton:hover { border: 1px solid #3daee9; }
+    QPushButton { border: 1px solid transparent; }
+    QPushButton:hover { border: 1px solid #3daee9; }
     '''
 
     def __init__(self, middle: bool = False):
@@ -852,14 +852,27 @@ class OverlayControlMixin:
         self.overlay_layout = QHBoxLayout(self.overlay_widget)
         self.overlay_layout.setContentsMargins(0, 0, 0, 0)
         self.overlay_layout.setSpacing(1)
+        self._updateOverlayPos()
 
     def resizeEvent(self, e):
         super().resizeEvent(e)
+        self._updateOverlayPos()
+
+    def _updateOverlayPos(self):
         frame_width = self.style().pixelMetric(QStyle.PM_DefaultFrameWidth)
         overlay_size = self.overlay_widget.sizeHint()
         x = self.rect().right() - frame_width - overlay_size.width()
         y = self.rect().bottom() - overlay_size.height()
-        y = y / 2 if self.middle else y - frame_width
+        middle = self.middle
+        if hasattr(self, 'document'):
+            # Keep the buttons centered if we have less than 2 lines in the editor
+            line_spacing = QFontMetrics(self.document().defaultFont()).lineSpacing()
+            if self.rect().height() < (line_spacing * 2):
+                middle = True
+        y = (y / 2) + frame_width if middle else y - frame_width
+        if hasattr(self, 'verticalScrollBar') and self.verticalScrollBar().isVisible():
+            scrollbar_width = self.style().pixelMetric(QStyle.PM_ScrollBarExtent)
+            x -= scrollbar_width
         self.overlay_widget.move(int(x), int(y))
 
     def addWidget(self, widget: QWidget):
@@ -867,7 +880,7 @@ class OverlayControlMixin:
         self.overlay_layout.insertWidget(0, widget)
 
     def addButton(self, icon_name: str, on_click, tooltip: str) -> QAbstractButton:
-        button = QToolButton(self.overlay_widget)
+        button = QPushButton(self.overlay_widget)
         button.setToolTip(tooltip)
         button.setIcon(read_QIcon(icon_name))
         button.setCursor(QCursor(Qt.PointingHandCursor))