Axis Bank is raising the dynamic currency conversion (DCC) markup on several credit cards from 1.5% to 3.5% effective August 28, 2026, as reported by Business Standard, CNBC-TV18, and Mint. The revised terms will depend on the card variant, with Magnus and Magnus for Burgundy cards seeing their DCC markup increased to 2%, while Olympus will have a separate 1.8% rate. For customers, this means that if an eligible transaction of ₹1 lakh is converted to rupees using DCC, the markup would amount to ₹3,500 under the new 3.5% rate, compared to ₹1,500 under the previous 1.5% rate. DCC applies when customers use an Axis Bank credit card abroad and choose to pay in Indian rupees instead of the local currency, or when making payments to merchants registered overseas in India. Cardholders who frequently use their cards for international transactions should be particularly aware of the higher DCC markup, with experts advising users to avoid missing payment due dates, especially when outstanding balances are high.
Axis Bank is increasing the top late-payment fee to ₹1,300 for outstanding balances of ₹50,000 and above, according to Business Standard, CNBC-TV18, and Mint. The revised fee structure shows ₹1,200 for dues from ₹10,001 to ₹50,000 and ₹1,300 for amounts above ₹50,000. For balances below ₹50,000, the fee remains unchanged. The bank has explained the revised terms in a document titled "Revision of Axis Bank Credit Card Terms and Conditions," stating that the late payment fee remains unchanged for outstanding balances below ₹50,000. The revised slab structure includes no charge for outstanding amounts below ₹500, ₹500 for amounts between ₹501 and ₹5,000, ₹750 for amounts between ₹5,001 and ₹10,000, ₹1,200 for amounts between ₹10,001 and ₹50,000, and ₹1,300 for amounts above ₹50,000. However, CNBC-TV18 reports reveal a drafting conflict in the late-fee notice, where the explanatory sentence suggests ₹1,300 applies to ₹50,000 and above, while the table places exactly ₹50,000 in the ₹1,200 slab. This creates ambiguity for customers with exact ₹50,000 outstanding balances, who should seek written confirmation from Axis Bank. The bank emphasizes that the bigger financial risk remains the interest charged on unpaid dues, with avoiding late fees not being the only reason to pay the full bill on time.
Axis Bank is withdrawing rewards or cashback on bridge fees, road fees and toll transactions from August 28, 2026, as detailed in the revised credit card terms reported by Business Standard, CNBC-TV18, and Mint. The bank is also moving gift card transactions from the broader 'Wallet' category to a separate 'Gift Card' category. Customers will not receive reward points or cashback on gift card purchases, and such spending will also not count towards fee-waiver limits or milestone-based spending targets. Payments made towards bridge charges, road fees and tolls will also become ineligible for rewards or cashback. This change affects customers who use credit cards strategically to reach annual spending thresholds, as toll payments and eligible gift-card purchases previously helped build towards milestone requirements. The new Gift Card category may help Axis Bank identify these purchases more consistently than the wider Wallet classification, with the bank confirming that gift-card purchases will remain outside rewards and applicable spending calculations. Additionally, the bank has confirmed that no rewards/cashback shall be earned on spends made on Bridge Fees, Road Fees, and Tolls, meaning cardholders who routinely use their credit cards to pay tolls or bridge fees will no longer earn any reward points or cashback on such transactions.
Axis Bank has specified the order in which payments will be adjusted when customers do not clear entire outstanding amounts, according to the revised terms reported by Business Standard, CNBC-TV18, and Mint. Payments will first be adjusted towards applicable fees and charges, including taxes, followed by EMIs, interest charges, purchase transactions and cash advances. This means cardholders should understand that a payment may not immediately reduce the purchase or cash-advance component of their outstanding balance if applicable fees, charges, EMIs or interest are pending. The bank has explained this in the document titled "Revision of Axis Bank Credit Card Terms and Conditions," stating that when a cardholder makes a payment towards their credit card outstanding, the payment will be adjusted across different components of their outstanding balance in a defined order. The payment adjustment order ensures that fees and charges are cleared first, followed by EMIs, interest charges, purchase transactions and cash advances, which typically carry the highest interest rate. This means that a payment may not immediately reduce the amount owed for purchases, as the amount paid will first be used towards fees, other charges and applicable taxes, with the remaining payment then adjusted against EMI dues, interest, purchase-related outstanding amounts and cash withdrawal dues in that order. 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.
The 3.5% DCC rate is not universal across all Axis Bank credit cards, with some premium products carrying separate conditions, as reported by CNBC-TV18 and Mint. International travellers need to pay closer attention to the changes, as the 3.5% rate is high enough to turn a convenient INR prompt into an avoidable charge. Selecting local currency, checking the card-specific notice and saving the transaction receipt can prevent costly surprises. DCC appears when a shop, hotel, ATM or website outside India offers to charge an Indian card in rupees instead of the local currency, with the merchant controlling the conversion after which Axis Bank adds its DCC markup and applicable taxes. The normal foreign-currency fee may still apply, so travellers should check the card's rate before departure. For customers who pay in full and rarely travel, the changes may see little direct cost impact, while those who regularly use cards for FASTag, road tolls or gift cards may receive less value from rewards and annual spending targets over time. The bank has confirmed that the DCC facility is offered to cardholders at the point of sale abroad, where they are given the option to pay in Indian rupees instead of the local currency of the country where the transaction takes place, with the revised rate making such transactions significantly more expensive. The changes are 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.
