Axis Bank Credit Card rules: DCC markup to rise to 3.5%, late fee goes up to ₹1,300

Axis Bank will revise several terms and conditions for its credit cardholders from August 28, 2026. The changes include a sharp increase in the markup charged on eligible Dynamic Currency Conversion (DCC) transactions, a revised late-payment fee for higher outstanding dues and changes to the treatment of gift-card purchases.

The revisions are part of Axis Bank’s updated Most Important Terms and Conditions (MITC) for credit cards.

DCC markup to rise to 3.5%

The biggest change is the increase in the DCC markup from 1.5% to 3.5%, plus applicable taxes. DCC generally applies when a cardholder uses an Axis Bank credit card overseas and chooses to pay in Indian rupees rather than the local currency. It may 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 will rise from ₹1,500 to ₹3,500. Cardholders travelling abroad should therefore carefully check the currency option offered by a merchant or payment terminal. Choosing the local currency instead of INR may help avoid the DCC markup, subject to the card’s other applicable foreign transaction charges.

Late-payment fee revised for higher dues

Axis Bank will also revise its late-payment fee structure. For outstanding amounts above ₹50,000, the fee will increase to ₹1,300.

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 will remain unchanged.

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How partial payments will be adjusted

The revised terms also clarify the order in which payments will be appropriated against credit-card dues. Payments will first be adjusted towards fees and charges, including applicable taxes, followed by EMIs, interest, purchase transactions and cash advances.

This is important for customers who make only a partial payment on their credit-card bill, as the payment will not initially go towards reducing the purchase balance.

Gift cards to remain outside rewards

From August 28, gift-card transactions will be classified separately as “Gift Card” rather than under the wallet category. Axis Bank has stated that gift-card purchases will not earn rewards or cashback and will not count towards applicable fee-waiver or milestone-spend calculations.

The revised terms also specify that bridge fees, road fees and toll payments will not earn rewards or cashback.

For cardholders, the most significant change is the DCC markup increase to 3.5%. Those using Axis Bank credit cards internationally should pay particular attention to the currency option at checkout and avoid selecting INR without checking the additional cost.

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