4 Axis Bank credit card changes from August 28 explained: DCC mark-up, late fees, rewards and more

Axis Bank has announced four changes to its credit card terms and conditions that will take effect from August 28, 2026. The changes include a steep hike in the Dynamic Currency Conversion (DCC) markup, a higher late payment fee for large outstanding balances, a defined order for adjusting payments, and a reclassification of gift card purchases that could affect how cardholders earn rewards.

The bank has explained the revised terms and conditions in a document titled "Revision of Axis Bank Credit Card Terms and Conditions". It said that the following revisions will apply to Axis Bank credit cards with effect from August 28, 2026.

1. Dynamic Currency Conversion markup doubled

One of the most significant changes is the revision of the Dynamic Currency Conversion ( DCC) markup from 1.5% to 3.5%.

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. While this may seem convenient, it comes at a cost, and Axis Bank has now more than doubled the markup on such transactions.

For example, for a transaction of US$1,000, the DCC markup at the earlier rate of 1.5% would be approximately ₹1,436 (assuming an exchange rate of ₹95.75 per dollar). At the revised rate of 3.5%, the same transaction would attract a markup of approximately ₹3,351, leading to an additional cost of about ₹1,915 on a single transaction.

2. Late payment fee: Higher for outstanding above ₹50,000

The bank has also revised the late payment fee structure, but only for cardholders with outstanding balances of ₹50,000 and above. The bank said, "The late payment fee remains unchanged for outstanding balances below ₹50,000. For outstanding balances of ₹50,000 and above, the revised late payment fee will be ₹1,300".

The revised slab structure is as follows:

• 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

• ₹1,300 for amounts above ₹50,000.

The increase from ₹1,200 to ₹1,300 will apply only to the highest slab.

3. Payment adjustment order defined

The third change relates to how the bank will adjust payments made by cardholders towards their outstanding balance. The bank said, "When you make a payment towards your credit card outstanding, the payment will be adjusted across different components of your outstanding balance in a defined order. Payments will be adjusted first towards applicable fees and charges (including taxes), followed by EMIs, interest charges, purchase transactions and cash advances".

This means if a cardholder has an outstanding balance that includes fees, interest, EMIs, purchases, and cash advances, any payment made will first go towards clearing fees and charges, then EMIs, then interest, then purchases, and finally cash advances, which typically carry the highest interest rate.

4. Gift card reclassification and no rewards on tolls, bridge fees

The fourth change concerns gift card purchases and the rewards structure.

The bank said that gift card purchases will continue to be excluded from the rewards category and will not earn rewards or cashback, nor will they contribute towards spends-based fee waiver calculations or milestone benefits.

However, instead of being classified under the "Wallet" spend category, such purchases will now be reclassified under a separate spend category titled "Gift Card".

Additionally, the bank said, "no rewards/cashback shall be earned on spends made on Bridge Fees, Road Fees, and Tolls". This means 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.