Axis Bank to update credit card rules and fees from August 28

Axis Bank is implementing significant changes to its credit card terms and conditions, effective August 28. The updates primarily affect Dynamic Currency Conversion (DCC) mark-up fees, late payment penalties, and payment adjustment sequences.

For many cardholders, the DCC mark-up fee for transactions made in Indian Rupees at international terminals or websites will increase from 1.5% to 3.5%. However, specific premium cards will see different rates; for instance, Magnus and Magnus for Burgundy cards will have a 2% mark-up, while Olympus cards will be set at 1.8%.

The bank is also revising its late payment fee structure. While fees for balances under ₹50,000 remain unchanged, the maximum fee for balances exceeding ₹50,000 will increase from ₹1,200 to ₹1,300. The tiered structure for other amounts remains: no fee for balances under ₹500, ₹500 for ₹501–₹5,000, ₹750 for ₹5,001–₹10,000, and ₹1,200 for ₹10,001–₹50,000.

Additionally, the bank has redefined the order of payment adjustments. Starting August 28, customer payments will first be applied to applicable fees, charges, and taxes, followed by EMIs, interest charges, and then the principal amount.