Axis Bank Credit Card Changes: August 28 Update

Axis Bank is changing several credit card rules starting August 28, and these updates could affect how you use your card, especially for international spending and earning rewards. Understanding these revisions is key to managing your money smart.

Higher Costs for Overseas Spending

If you use your Axis Bank credit card for international transactions and choose to pay in Indian rupees, you will see a higher charge. The dynamic currency conversion (DCC) markup is increasing for most cards. It will jump from 1.5 per cent to 3.5 per cent.

• Old DCC markup: 1.5 per cent
• New DCC markup: 3.5 per cent
• Cost on Rs 1 lakh transaction (old): Rs 1,500
• Cost on Rs 1 lakh transaction (new): Rs 3,500

This means a Rs 1 lakh transaction with DCC will now cost you Rs 3,500 in markup, a significant increase from the previous Rs 1,500. To avoid these extra charges, always opt to pay in the local currency when you are abroad.

Revised Late Payment Fees

The bank is also updating its late-payment fee structure, which could impact you if you have larger outstanding balances. While balances below Rs 50,000 will not see a change, higher amounts will incur revised fees.

• Balances below Rs 500: Nil
• Balances Rs 501-Rs 5,000: Rs 500
• Balances Rs 5,001-Rs 10,000: Rs 750
• Balances Rs 10,001-Rs 50,000: Rs 1,200
• Balances Rs 50,000 and above: Rs 1,300

If your unpaid bill is Rs 50,000 or more, you will now be charged a revised fee of Rs 1,300. This is an additional Rs 100 for those with large outstanding amounts, though remember that the interest on unpaid dues remains the biggest financial risk.

Changes to Rewards and Cashback

If you rely on your credit card for rewards, you should note that certain transactions will no longer earn you cashback or points from August 28. This includes payments for bridge fees, road fees, and tolls.

Purchases of gift cards will also continue to be excluded from rewards and will not count towards meeting spending thresholds for fee waivers or milestone benefits. Axis Bank is reclassifying gift card transactions from the ‘Wallet’ category to a distinct ‘Gift Card’ category.

How Partial Payments Are Applied

It is helpful to understand how your partial payments are allocated if you cannot clear your full outstanding amount. The bank applies payments in a specific order.

• First, to fees and charges, including taxes.
• Next, to EMIs.
• Then, to interest charges.
• Following that, to purchase transactions.
• Finally, to cash advances.

These changes mean you might need to adjust your credit card strategy, especially if you travel internationally or use your card for specific types of purchases. Review the revised terms for your specific card variant and always aim to pay your bills in full by the due date.