Axis Bank Credit Card Rules Change From August 28, Higher Currency Fee & New Reward Limits Ahead

Mumbai: Axis Bank will revise several credit card rules and charges from August 28, 2026. Customers should understand these changes to avoid higher fees and loss of reward points.

The revised terms cover foreign payments made in Indian rupees, late payment charges, adjustment of partial bill payments, gift card purchases, and toll-related transactions.

Currency Fee Rises

The Dynamic Currency Conversion, or DCC, fee will rise from 1.5 percent to 3.5 percent, excluding applicable taxes.

DCC applies when customers use an Axis Bank credit card abroad and choose to pay in Indian rupees instead of the local currency. It may also apply to payments made in India to merchants registered overseas.

For example, the fee on an eligible transaction of Rs 1 lakh will increase from Rs 1,500 to Rs 3,500 before taxes. Customers travelling abroad should carefully check the currency option displayed by the merchant or payment machine.

Late Fee Revised

Customers with an outstanding credit card balance above Rs 50,000 will face a late payment fee of Rs 1,300. Charges for lower outstanding balance categories will remain unchanged, according to the bank.

Partial Payment Order

Axis Bank has also explained how partial bill payments will be adjusted. The amount paid will first be used towards fees, other charges and applicable taxes.

The remaining payment will then be adjusted against EMI dues, interest, purchase-related outstanding amounts and cash withdrawal dues, in that order. Therefore, a partial payment may not immediately reduce the amount owed for purchases.

Rewards Restricted

From August 28, gift card transactions will be classified separately instead of being treated as wallet transactions.

Customers will not receive reward points or cashback on gift card purchases. 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.

Customers who frequently travel overseas should pay in the local currency where suitable and review their monthly bills carefully. Paying the total amount due before the deadline can also help them avoid interest and late fees under the revised rules.