Axis Bank will increase its Dynamic Currency Conversion markup on credit cards to 3.5% and introduce new fee structures and reward restrictions, signalling a sector-wide recalibration of card costs affecting frequent travellers and online shoppers.
Axis Bank is set to raise the cost of overseas card spending, with its Dynamic Currency Conversion markup on credit cards climbing to 3.5% from 1.5% plus tax from August 28. The change applies when a cardholder chooses to pay in rupees rather than the local currency on an overseas transaction, and can also affect some India-based purchases routed through merchants registered abroad. That means a ₹1 lakh transaction billed through DCC would carry a markup of ₹3,500 before taxes, making the choice of currency at checkout more important for travellers and online shoppers.
The bank is also tightening its late-payment structure for credit cards. For balances above ₹50,000, the fee will rise to ₹1,300, while the lower slabs stay unchanged. The revised schedule keeps nil charges for dues up to ₹500, then applies fees of ₹500, ₹750 and ₹1,200 across the intermediate bands. Axis has also clarified how partial payments will be allocated: amounts received will first go towards fees and charges, including tax, then EMIs, interest, purchase spends and cash advances. For customers who pay only part of the bill, that means the purchase balance may not come down immediately.
The updated terms also redraw the rewards map. From August 28, gift-card purchases will be classified separately rather than under the wallet category, and they will not earn cashback or rewards or count towards fee waivers or milestone-spend targets. Bridge fees, road fees and toll payments will also be excluded from rewards. In practical terms, customers who rely on their cards for routine charges, or who use them to hit spending thresholds, may find fewer transactions qualifying for benefits.
Industry reports suggest Axis is moving in step with a wider recalibration of card fees across the banking sector, particularly for foreign-currency transactions. That makes the fine print increasingly important for cardholders, especially those who travel frequently or make cross-border online purchases. Choosing the local currency instead of rupees at the point of sale may help avoid the DCC charge, although other foreign transaction costs can still apply.
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