Axis Credit Card rules change next week: These new charges and reward rules take effect from this date

Axis Bank has announced a series of changes to its credit card terms and conditions, which will come into force on 28 August 2026, affecting charges on certain international transactions, late payment fees, reward benefits and the adjustment of partial payments.

Using an Axis Credit Card? New rules take effect August 28

One of the most significant changes concerns Dynamic Currency Conversion, or DCC, which may affect customers travelling abroad or making purchases from international merchants. The DCC markup will rise from 1.5% to 3.5%, with applicable taxes charged additionally.

DCC is a payment option that allows cardholders to pay in Indian rupees instead of the local currency when making a purchase at an overseas point of sale or through an international online merchant. The higher markup means customers who use this option could incur higher charges under the revised rules.

Axis Bank is also revising its late payment fee for customers with larger outstanding balances. The late fee for balances exceeding ₹50,000 will increase to ₹1,300.

The other late payment slabs will remain unchanged. Outstanding amounts below ₹500 will continue to attract no late payment fee. Balances between ₹501 and ₹5,000 will carry a ₹500 fee, while those between ₹5,001 and ₹10,000 will attract a ₹750 charge. Customers with outstanding amounts ranging from ₹10,001 to ₹50,000 will continue to face a late payment fee of ₹1,200.

The bank has also formalised the order in which partial payments made by cardholders will be adjusted against their outstanding dues. Payments will first be applied towards applicable fees, charges and taxes, followed by equated monthly instalments, or EMIs, interest charges, general purchase transactions and, finally, cash advances.

The change is particularly relevant for customers who do not clear their entire outstanding balance, as cash advances generally carry higher interest rates and their principal will be settled last under the prescribed payment adjustment order.

There are also changes to the way certain transactions qualify for rewards. Cardholders will no longer earn reward points or cashback on tolls, road fees and bridge charges. Gift card purchases, meanwhile, are being moved out of the ‘Wallet’ category and placed under a separate ‘Gift Card’ classification.

Such gift card transactions will continue to be excluded from earning reward points or cashback. They will also not count towards milestone-based spending requirements or annual fee waiver calculations.

The revised terms are scheduled to take effect on August 28, 2026, making it important for Axis Bank credit cardholders to review how the changes could affect their spending and payment patterns.