Axis Bank Credit Card Rules Change Aug 28: Key Updates

Heads up, Axis Bank credit card users! Major changes are coming to your card’s terms and conditions, kicking in on August 28, 2026. These updates affect everything from international transaction fees to how your payments are adjusted.

If you often shop with foreign merchants or make international transactions, pay attention. Axis Bank is raising its Dynamic Currency Conversion (DCC) markup from 1.5% to 3.5% plus taxes.

This higher fee applies when you choose to pay in Indian Rupees instead of the local foreign currency during an international transaction.

Understanding New Late Payment Fees

The bank is also updating its late payment fees, especially for higher outstanding balances. If your outstanding balance goes above Rs 50,000, you will now incur a late payment fee of Rs 1,300.

For lower outstanding amounts, the existing fee structure continues. There is no charge for balances below Rs 500, while amounts between Rs 501 and Rs 5,000 will incur a Rs 500 fee.

Balances ranging from Rs 5,001 to Rs 10,000 will face a Rs 750 fee. For balances between Rs 10,001 and Rs 50,000, the fee is Rs 1,200.

How Your Payments Get Adjusted

Axis Bank has also clarified the order in which your partial payments will be applied to your outstanding balance. It is important to know this sequence, especially if you sometimes make partial payments.

First, your payment covers applicable fees, charges, and taxes. Next, it goes towards equated monthly instalments (EMIs), followed by interest charges.

After that, general purchase transactions are covered. Finally, cash advances are settled, which often carry the highest interest rates.

Clearing cash advances last could mean you pay more interest overall if you only make partial payments, so be mindful of this order.

Changes to Rewards and Cashback

If you love earning reward points or cashback, be aware that some expenses will no longer qualify. You will not earn these benefits on transactions for tolls, road fees, and bridge charges.

Gift card purchases are also seeing a reclassification, moving into their own ‘Gift Card’ category, separate from ‘Wallet’ transactions. These purchases will continue to be excluded from earning reward points, cashback, milestone spend calculations, and annual fee waivers.

These new rules from Axis Bank mean you should review your spending habits, especially for international transactions and partial payments, to manage your credit card effectively from August 28, 2026.