Axis Bank credit cardholders should prepare for significant changes to their terms and conditions, set to take effect from August 28, 2026. The revisions, outlined in the bank's updated Most Important Terms and Conditions (MITC), primarily impact Dynamic Currency Conversion (DCC) transactions, late payment fees, and reward eligibility for certain purchases.
DCC Markup Jumps to 3.5%
One of the most notable changes is the sharp increase in the Dynamic Currency Conversion (DCC) markup. This charge, which applies when a cardholder opts to pay in Indian Rupees (INR) for an overseas transaction or for certain India-based transactions processed by overseas merchants, will rise from 1.5% to 3.5%, plus applicable taxes.
For instance, a ₹1 lakh transaction processed under DCC will incur a markup of ₹3,500 (before taxes), a considerable jump from the previous ₹1,500. Cardholders traveling internationally are advised to carefully select the local currency option at payment terminals to potentially avoid this higher DCC charge, though other foreign transaction fees may still apply.
Revised Late Payment Fees
Axis Bank is also adjusting its late payment fee structure. While the fees for lower outstanding amounts remain unchanged, cardholders with dues exceeding ₹50,000 will now face a higher penalty of ₹1,300.
- Up to ₹500: Nil
- ₹501–₹5,000: ₹500
- ₹5,001–₹10,000: ₹750
- ₹10,001–₹50,000: ₹1,200
- Above ₹50,000: ₹1,300
Gift Card Purchases Excluded from Rewards
From August 28, transactions involving gift cards will be reclassified under a distinct “Gift Card” category, separate from the general wallet category. Crucially, these purchases will no longer be eligible for rewards, cashback, or count towards any fee waiver or milestone spend calculations.
Additionally, the updated terms specify that bridge fees, road fees, and toll payments will also be excluded from earning rewards or cashback.
Partial Payment Adjustment Order Clarified
The bank has also clarified the hierarchy for how partial payments on credit card bills will be appropriated. Payments will first be applied towards outstanding fees and charges (including taxes), followed by EMIs, interest accrued, purchase transactions, and finally, cash advances. This order is important for customers who do not pay their full outstanding balance, as it dictates which components of their bill are settled first.
These revisions highlight the importance for Axis Bank credit card users to understand the updated terms, particularly concerning international transactions and reward programs, to manage their finances effectively.