diff --git a/modules/apps/27-interchain-accounts/controller/ibc_middleware.go b/modules/apps/27-interchain-accounts/controller/ibc_middleware.go
index f2050b9f010..24e602227d4 100644
--- a/modules/apps/27-interchain-accounts/controller/ibc_middleware.go
+++ b/modules/apps/27-interchain-accounts/controller/ibc_middleware.go
@@ -24,10 +24,10 @@ type IBCMiddleware struct {
 }
 
 // IBCMiddleware creates a new IBCMiddleware given the associated keeper and underlying application
-func NewIBCMiddleware(k keeper.Keeper, app porttypes.IBCModule) IBCMiddleware {
+func NewIBCMiddleware(app porttypes.IBCModule, k keeper.Keeper) IBCMiddleware {
 	return IBCMiddleware{
-		keeper: k,
 		app:    app,
+		keeper: k,
 	}
 }
 
diff --git a/testing/simapp/app.go b/testing/simapp/app.go
index f073c658ffb..1f088bd0683 100644
--- a/testing/simapp/app.go
+++ b/testing/simapp/app.go
@@ -356,8 +356,11 @@ func NewSimApp(
 	)
 
 	// IBC Fee Module keeper
-	app.IBCFeeKeeper = ibcfeekeeper.NewKeeper(appCodec, keys[ibcfeetypes.StoreKey], app.GetSubspace(ibcfeetypes.ModuleName),
-		app.IBCKeeper.ChannelKeeper, app.IBCKeeper.ChannelKeeper, &app.IBCKeeper.PortKeeper, app.AccountKeeper, app.BankKeeper,
+	app.IBCFeeKeeper = ibcfeekeeper.NewKeeper(
+		appCodec, keys[ibcfeetypes.StoreKey], app.GetSubspace(ibcfeetypes.ModuleName),
+		app.IBCKeeper.ChannelKeeper, // may be replaced with IBC middleware
+		app.IBCKeeper.ChannelKeeper,
+		&app.IBCKeeper.PortKeeper, app.AccountKeeper, app.BankKeeper,
 	)
 
 	// ICA Controller keeper
@@ -389,6 +392,17 @@ func NewSimApp(
 		app.AccountKeeper, app.BankKeeper, scopedTransferKeeper,
 	)
 
+	// Mock Module Stack
+
+	// Mock Module setup for testing IBC and also acts as the interchain accounts authentication module
+	// NOTE: the IBC mock keeper and application module is used only for testing core IBC. Do
+	// not replicate if you do not need to test core IBC or light clients.
+	mockModule := ibcmock.NewAppModule(&app.IBCKeeper.PortKeeper)
+
+	// The mock module is used for testing IBC
+	mockIBCModule := ibcmock.NewIBCModule(&mockModule, ibcmock.NewMockIBCApp(ibcmock.ModuleName, scopedIBCMockKeeper))
+	ibcRouter.AddRoute(ibcmock.ModuleName, mockIBCModule)
+
 	// Create Transfer Stack
 	// SendPacket, since it is originating from the application to core IBC:
 	// transferKeeper.SendPacket -> fee.SendPacket -> channel.SendPacket
@@ -396,8 +410,6 @@ func NewSimApp(
 	// RecvPacket, message that originates from core IBC and goes down to app, the flow is the otherway
 	// channel.RecvPacket -> fee.OnRecvPacket -> transfer.OnRecvPacket
 
-	transferModule := transfer.NewAppModule(app.TransferKeeper)
-
 	// transfer stack contains (from top to bottom):
 	// - IBC Fee Middleware
 	// - Transfer
@@ -410,20 +422,19 @@ func NewSimApp(
 	// Add transfer stack to IBC Router
 	ibcRouter.AddRoute(ibctransfertypes.ModuleName, transferStack)
 
-	// Mock Module setup for testing IBC and acts as the interchain accounts authentication module
-	// NOTE: the IBC mock keeper and application module is used only for testing core IBC. Do
-	// not replicate if you do not need to test core IBC or light clients.
-	mockModule := ibcmock.NewAppModule(&app.IBCKeeper.PortKeeper)
-
 	// Create Interchain Accounts Stack
 	// SendPacket, since it is originating from the application to core IBC:
-	// icaAuthModuleKeeper.SendPacket -> icaControllerKeeper.SendPacket -> channel.SendPacket
+	// icaAuthModuleKeeper.SendPacket -> fee.SendPacket -> icaControllerKeeper.SendPacket -> channel.SendPacket
+
+	// OnAckPacket as this is where fee's are paid out
+	// mockModule.OnAcknowledgementPacket -> fee.OnAcknowledgementPacket -> channel.OnAcknowledgementPacket
 
 	// initialize ICA module with mock module as the authentication module on the controller side
 	var icaControllerStack porttypes.IBCModule
 	icaControllerStack = ibcmock.NewIBCModule(&mockModule, ibcmock.NewMockIBCApp("", scopedICAMockKeeper))
 	app.ICAAuthModule = icaControllerStack.(ibcmock.IBCModule)
-	icaControllerStack = icacontroller.NewIBCMiddleware(app.ICAControllerKeeper, icaControllerStack)
+	icaControllerStack = ibcfee.NewIBCMiddleware(icaControllerStack, app.IBCFeeKeeper)
+	icaControllerStack = icacontroller.NewIBCMiddleware(icaControllerStack, app.ICAControllerKeeper)
 
 	icaHostIBCModule := icahost.NewIBCModule(app.ICAHostKeeper)
 
@@ -450,13 +461,7 @@ func NewSimApp(
 	feeMockModule := ibcmock.NewIBCModule(&mockModule, ibcmock.NewMockIBCApp(MockFeePort, scopedFeeMockKeeper))
 	app.FeeMockModule = feeMockModule
 	feeWithMockModule := ibcfee.NewIBCMiddleware(feeMockModule, app.IBCFeeKeeper)
-
-	mockIBCModule := ibcmock.NewIBCModule(&mockModule, ibcmock.NewMockIBCApp(ibcmock.ModuleName, scopedIBCMockKeeper))
-
-	// Add Mock Module & Mock Fee Module to IBC Router
-	ibcRouter.
-		AddRoute(ibcmock.ModuleName, mockIBCModule).
-		AddRoute(MockFeePort, feeWithMockModule)
+	ibcRouter.AddRoute(MockFeePort, feeWithMockModule)
 
 	// Seal the IBC Router
 	app.IBCKeeper.SetRouter(ibcRouter)
@@ -500,7 +505,7 @@ func NewSimApp(
 		authzmodule.NewAppModule(appCodec, app.AuthzKeeper, app.AccountKeeper, app.BankKeeper, app.interfaceRegistry),
 
 		// IBC modules
-		transferModule,
+		transfer.NewAppModule(app.TransferKeeper),
 		ibcfee.NewAppModule(app.IBCFeeKeeper),
 		ica.NewAppModule(&app.ICAControllerKeeper, &app.ICAHostKeeper),
 		mockModule,
@@ -562,7 +567,7 @@ func NewSimApp(
 		evidence.NewAppModule(app.EvidenceKeeper),
 		authzmodule.NewAppModule(appCodec, app.AuthzKeeper, app.AccountKeeper, app.BankKeeper, app.interfaceRegistry),
 		ibc.NewAppModule(app.IBCKeeper),
-		transferModule,
+		transfer.NewAppModule(app.TransferKeeper),
 	)
 
 	app.sm.RegisterStoreDecoders()