Axis Bank credit card holders need to pay close attention as the financial institution has announced a comprehensive overhaul of its card terms and conditions. Ranging from international transaction markups and late payment fees to reward policies, the majority of these revisions are scheduled to take effect starting August 28. For customers whose accounts will fall under the purview of these updates, understanding the revised fee structure is crucial to managing monthly expenses effectively.
Dynamic Currency Conversion and International Transactions
Among the notable updates is the adjustment to the Dynamic Currency Conversion markup. The DCC markup is set to surge from 1.5 percent to 3.5 percent, with applicable taxes charged additionally on top of it. This markup adjustment will directly impact cardholders who travel abroad or engage in cross-border payments. The DCC payment option allows users overseas to settle bills in Indian currency rather than the local foreign currency. Consequently, the hike in markup fees means that international transactions will attract significantly higher charges than before.
Revised Late Payment Fee Slabs
Axis Bank has also restructured its late payment fee tiers, particularly for customers carrying larger outstanding balances. Missing the due date on a credit card bill exceeding Rs 50,000 will now result in a steep late fee of Rs 1,300. The provider has adjusted fees across lower balance slabs as well. While outstanding amounts below Rs 500 will incur no late fee, balances ranging from Rs 501 to Rs 5,000 will attract a fee of Rs 500. Dues between Rs 5,001 and Rs 10,000 will carry a Rs 750 late fee, and balances between Rs 10,001 and Rs 50,000 will be charged Rs 1,200.
Partial Payment Allocation and Reward Point Revisions
The mechanism for allocating partial payments towards outstanding balances is also changing. Going forward, incoming payments will be utilized first to cover applicable fees, charges, and taxes. Only after clearing those dues will the remaining funds be applied toward equated monthly instalments, general purchase interest, and finally cash advances. Furthermore, the bank is modifying its reward points policy. Transactions involving tolls, road fees, and bridges will no longer qualify for reward points or cashbacks.
