Changes to the rules concerning payments, repayment deadlines, late payment penalties, and bonus accruals for Axis Bank credit cardholders will take effect starting August 28, 2026. These modifications may lead to an increase in the cost of certain transactions made with Axis Bank credit cards.
The bank has introduced several changes to the terms of use for credit cards, including rules related to Dynamic Currency Conversion (DCC) during international transactions, as well as new norms for penalties for late payment and the accrual of rewards in specific categories.
When making international payments with an Axis Bank credit card, if the customer chooses to pay in Indian Rupees instead of foreign currency, this is called DCC. Previously, a DCC markup of 1.5% was applied to such operations. However, from August 28, 2026, this markup will increase to 3.5%. This means that customers will have to pay more when paying abroad with the card if they choose to pay in INR, so cardholders should consider additional costs when selecting currency during international transactions.
The penalty categories for late payment have also been adjusted. A fine of 1,300 rupees will be charged for an unpaid balance of 50,000 rupees or more. Thus, it becomes even more critical for holders of cards with large debts to pay their bill on time by the due date.
The structure of fines for other amounts remains as follows:
- Up to 500 rupees: no late payment penalty
- From 501 to 5,000 rupees: 500 rupees
- From 5,001 to 10,000 rupees: 750 rupees
- From 10,001 to 50,000 rupees: 1,200 rupees
- 50,000 rupees and above: 1,300 rupees
From August 28, payments made to the card will be allocated in the prescribed order. First, funds will be directed to cover all applicable charges and taxes. After that, the payment will be used to repay EMIs, interest, purchase transactions, and cash advances. This implies that if there were any previous charges, fees, EMIs, or interest on the card, part of the payment made will first go towards settling these items. As a result, the reduction in purchase or cash advance debt after payment may occur slower than the customer expects.
The bank has also changed the rules for accruing rewards on certain transactions. Bonus points or cashback will no longer be credited for purchasing gift cards. Furthermore, such transactions will not be counted towards receiving volume discounts or milestone bonuses. Rewards or cashback are also not provided for payments related to road tolls, traffic charges, and travel fares. Expenses related to gift cards will be classified under the 'Gift Cards' category, not the 'Wallet' category.
If you use an Axis Bank credit card, after August 28, you must carefully select the DCC option during international transactions, as paying in Indian Rupees may incur a DCC markup of 3.5%. Additionally, cardholders with large balances should remember that missing a payment deadline can increase the late payment penalty amount. Cardholders must also consider that not all expenses now guarantee the receipt of rewards or cashback.