diff --git a/app/main/views/api_keys.py b/app/main/views/api_keys.py
index 68a93f8d2..c8f8b66f8 100644
--- a/app/main/views/api_keys.py
+++ b/app/main/views/api_keys.py
@@ -69,14 +69,15 @@ def create_api_key(service_id):
         (KEY_TYPE_TEAM, 'Team and whitelist – limits who you can send to'),
         (KEY_TYPE_TEST, 'Test – pretends to send messages'),
     ]
+    disabled_options, option_hints = [], {}
     if current_service['restricted']:
         disabled_options = [KEY_TYPE_NORMAL]
-        option_hints = {KEY_TYPE_NORMAL: Markup(
-            'This option is not available because your service is in '
+        option_hints[KEY_TYPE_NORMAL] = Markup(
+            'Not available because your service is in '
             '<a href="{}#trial-mode">trial mode</a>'.format(url_for(".using_notify"))
-        )}
-    else:
-        disabled_options, option_hints = [], {}
+        )
+    if 'letter' in current_service['permissions']:
+        option_hints[KEY_TYPE_TEAM] = 'Can’t be used to send letters'
     if form.validate_on_submit():
         if form.key_type.data in disabled_options:
             abort(400)
diff --git a/tests/app/main/views/test_api_keys.py b/tests/app/main/views/test_api_keys.py
index b7a42be59..d8beeae36 100644
--- a/tests/app/main/views/test_api_keys.py
+++ b/tests/app/main/views/test_api_keys.py
@@ -7,7 +7,13 @@ from bs4 import BeautifulSoup
 from unittest.mock import call
 
 from tests import validate_route_permission
-from tests.conftest import normalize_spaces, SERVICE_ONE_ID
+from tests.conftest import (
+    mock_get_service,
+    mock_get_live_service,
+    mock_get_service_with_letters,
+    normalize_spaces,
+    SERVICE_ONE_ID,
+)
 
 
 def test_should_show_api_page(
@@ -120,20 +126,43 @@ def test_should_show_api_keys_page(
     mock_get_api_keys.assert_called_once_with(service_id=fake_uuid)
 
 
+@pytest.mark.parametrize('service_mock, expected_options', [
+    (mock_get_service, [
+        (
+            'Live – sends to anyone '
+            'Not available because your service is in trial mode'
+        ),
+        'Team and whitelist – limits who you can send to',
+        'Test – pretends to send messages',
+    ]),
+    (mock_get_live_service, [
+        'Live – sends to anyone',
+        'Team and whitelist – limits who you can send to',
+        'Test – pretends to send messages',
+    ]),
+    (mock_get_service_with_letters, [
+        'Live – sends to anyone',
+        (
+            'Team and whitelist – limits who you can send to '
+            'Can’t be used to send letters'
+        ),
+        'Test – pretends to send messages',
+    ]),
+])
 def test_should_show_create_api_key_page(
-    logged_in_client,
+    client_request,
+    mocker,
     api_user_active,
-    mock_login,
     mock_get_api_keys,
-    mock_get_service,
-    mock_has_permissions,
-    fake_uuid,
+    service_mock,
+    expected_options,
 ):
-    logged_in_client.login(api_user_active)
-    service_id = fake_uuid
-    response = logged_in_client.get(url_for('main.create_api_key', service_id=fake_uuid))
+    service_mock(mocker, api_user_active)
 
-    assert response.status_code == 200
+    page = client_request.get('main.create_api_key', service_id=SERVICE_ONE_ID)
+
+    for index, option in enumerate(expected_options):
+        assert normalize_spaces(page.select('.block-label')[index].text) == option
 
 
 def test_should_create_api_key_with_type_normal(
diff --git a/tests/conftest.py b/tests/conftest.py
index 47412355c..af0c64b62 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -268,6 +268,19 @@ def mock_get_live_service(mocker, api_user_active):
     return mocker.patch('app.service_api_client.get_service', side_effect=_get)
 
 
+@pytest.fixture(scope='function')
+def mock_get_service_with_letters(mocker, api_user_active):
+    def _get(service_id):
+        return {'data': service_json(
+            service_id,
+            users=[api_user_active.id],
+            restricted=False,
+            permissions=['email', 'sms', 'letter']
+        )}
+
+    return mocker.patch('app.service_api_client.get_service', side_effect=_get)
+
+
 @pytest.fixture(scope='function')
 def mock_create_service(mocker):
     def _create(service_name, message_limit, restricted, user_id, email_from):