The changes are part of the bank’s revised Most Important Terms and Conditions (MITC) for credit cards.
DCC markup to rise to 3.5%
One of the key changes is the increase in the DCC markup from 1.5% to 3.5%, plus applicable taxes.
DCC is relevant when a customer uses an Axis Bank credit card overseas and chooses to pay in Indian rupees instead of the local currency. It can also apply to certain transactions in India where the merchant is registered overseas.
For example, on an eligible ₹1 lakh DCC transaction, the markup before taxes would increase from ₹1,500 to ₹3,500.
Cardholders should therefore be careful when an overseas merchant or payment terminal offers the choice of paying in INR or the local currency.
Late-payment fee revised for higher dues
Axis Bank will also revise its late-payment fee structure. For outstanding amounts of more than ₹50,000, the late-payment fee will be ₹1,300.
The revised slabs from August 28 will be:
| Outstanding amount | Late-payment fee |
| Up to ₹500 | Nil |
| ₹501–₹5,000 | ₹ 500 |
| ₹5,001–₹10,000 | ₹ 750 |
| ₹10,001–₹50,000 | ₹ 1,200 |
| Above ₹50,000 | ₹ 1,300 |
The bank has stated that the lower slabs remain unchanged.
How Axis Bank will adjust partial payments
The revised terms also specify the order in which payments will be adjusted against outstanding credit-card dues.
Payments will be appropriated towards fees and charges, including taxes, followed by EMIs, interest, purchase transactions and cash advances.
This is relevant for customers who make only a partial payment against their credit-card bill, as the payment will not first go towards reducing the purchase balance.
Gift-card purchases to remain outside rewards
Axis Bank is also changing the classification of gift-card transactions. From August 28, these transactions will be classified separately as “Gift Card” instead of under the wallet category.
The bank has said gift-card purchases will not earn rewards or cashback and will also not count towards applicable fee-waiver or milestone-spend calculations.
The revised terms also specify that bridge fees, road fees and tolls will not earn rewards or cashback.
For cardholders, the biggest direct change is the DCC markup increase from 1.5% to 3.5%. Customers using their Axis credit cards overseas should therefore pay particular attention to the currency option presented at the time of payment.
