Axis Bank has announced major updates to its credit card terms and conditions, which will come into force on Aug. 28, 2026. The revised rules impact dynamic currency conversion charges, late payment fees, payment settlement orders, and the accrual of reward points.
Dynamic Currency Conversion Markup
The most significant change for customers travelling abroad or shopping at international merchants is a steep increase in the Dynamic Currency Conversion (DCC) markup. The fee is jumping from 1.5% to 3.5% plus applicable taxes. DCC allows cardholders to pay in Indian Rupees rather than the foreign local currency at foreign points of sale or overseas online terminals.
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Revised Late Payment Fees
Axis Bank is updating its penalty charges for overdue payments, specifically targeting higher outstanding balances. For balances exceeding Rs 50,000, the late payment fee will increase to Rs 1,300. The charges for lower balance slabs remain untouched:
Outstanding amounts below Rs 500 incur no charge.
Amounts between Rs 501 and Rs 5,000 carry a Rs 500 fee.
Balances between Rs 5,001 and Rs 10,000 incur a Rs 750 charge.
Amounts ranging from Rs 10,001 to Rs 50,000 carry a Rs 1,200 fee.
Payment Adjustment Order
The lender has formalised the exact order in which partial payments will be adjusted against outstanding balances. Any incoming payment will first clear applicable fees, charges, and taxes, followed by equated monthly instalments (EMIs), interest charges, general purchase transactions, and finally cash advances.
Because cash advances typically carry the highest interest rate, customers making partial payments will see their principal balance cleared last.
Rewards And Category Changes
Cardholders will no longer earn reward points or cashback on expenses related to tolls, road fees, and bridge charges. Further, gift card purchases are being reclassified out of the 'Wallet' category into a dedicated 'Gift Card' classification.
Gift card transactions will continue to be excluded from earning reward points or cashback and will not count towards milestone spend calculations or annual fee waivers.
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