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

Starting August 28, 2026, Axis Bank will update various credit‑card rules and fees. Customers need to be aware of these adjustments to steer clear of extra charges and forfeited reward points.

The updated terms apply to foreign transactions settled in rupees, late‑payment fees, handling of partial bill payments, gift‑card buys, and toll‑related spends.

Currency Fee Increase

The Dynamic Currency Conversion (DCC) charge will increase from 1.5 % to 3.5 %, taxes excluded. DCC kicks in when an Axis Bank credit‑card holder overseas opts to settle the bill in rupees rather than the local currency, and it can also apply to rupee payments made in India to merchants whose registration is abroad.

As an illustration, a qualifying transaction of ₹1 lakh will see the fee jump from ₹1,500 to ₹3,500 before tax. Travellers should verify the currency choice shown by the merchant or terminal before confirming payment abroad.

Late‑Fee Adjustment

If a cardholder’s unpaid balance exceeds ₹50,000, the late‑payment penalty will be ₹1,300. For balances below this threshold, the existing charges will stay the same, the bank said.

Partial Payment Allocation

Axis Bank has clarified the order in which partial payments are applied. The paid amount will first cover fees, other charges and any applicable taxes.

Any remainder will then be allocated to EMI obligations, interest, purchase‑related balances and cash‑advance dues, in that sequence. Consequently, a partial payment might not instantly lower the outstanding purchase amount.

Reward Limitations

Effective August 28, gift‑card purchases will be logged separately and will no longer be counted as wallet‑type transactions.

No reward points or cashback will be awarded on gift‑card spends, and these transactions will not contribute to fee‑waiver thresholds or milestone‑based spending goals.

Expenditures on bridge tolls, road fees and similar charges will likewise be excluded from earning rewards or cashback.

Frequent overseas travellers are advised to settle in the local currency whenever possible and to scrutinise their monthly statements closely. Clearing the full balance before the due date can also help them sidestep interest and late‑fee charges under the new rules.