If you use an Axis Bank credit card, you need to know about some important changes. For these users, August 28, 2026, is a crucial date, as they will face tighter reward structures and higher transaction costs from then on. These new rules will particularly impact those making card payments abroad, those with high balances and those purchasing gift cards.
Dynamic Currency Conversion
Under Axis Bank’s new rules, the Dynamic Currency Conversion (DCC) markup is being increased. Currently, this fee is 1.5 per cent and will be increased to 3.5 per cent effective August 28, 2026. DCC facility is used when you opt to pay in Indian Rupees instead of the local currency at a shop, hotel, or other merchant’s POS terminal abroad. This means that customers paying in INR abroad may incur higher fees than before. Therefore, it’s important to choose your payment currency carefully when making international transactions.
You will not receive rewards on purchasing gift cards
The bank has also made a major change regarding gift card purchases. From August 28, gift card purchases will be kept in a separate gift card spend category. Customers will not get reward points or cashback on expenses made in this category.
In addition, expenses made on gift cards will not be included in the calculation of Spend-based Fee Waiver and Milestone Benefits for some cards. This means that if you use a credit card to accumulate rewards or avail milestone benefits, then gift card purchases will no longer provide you with the same benefits as before. Moreover, no rewards or cashback will be earned on spends made on tolls and road fees.
Revised late payment fees on outstanding dues
The new rule will also affect customers who fail to pay their credit card bills on time. Specifically, the late payment fee will increase to Rs 1,300 for balances exceeding Rs 50,000.
The new late payment fees will be as follows:
| Outstanding Balance Slab | Revised Late Payment Fee |
| Below Rs 500 | Nil |
| Rs 501 to Rs 5,000 | Rs 500 |
| Rs 5,001 to Rs 10,000 | Rs 750 |
| Rs 10,001 to Rs 50,000 | Rs 1,200 |
| Above Rs 50,000 | Rs 1,300 (up from Rs 1,200) |
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
