Axis Bank to revamp credit card features from December 20—Here’s what you need to know | Mint

Axis Bank offers its credit cardholders one of the best options for transfer of reward points to various airline and hotel loyalty programs. However, from 20th December 2024, Axis Bank will charge its credit cardholders a Rs. 199 redemption fee for transferring credit card reward points to any transfer partner. 

Apart from this, Axis Bank has announced several credit card-related changes that will come into effect from 20th December. Let us understand what are these changes and their impact on credit cardholders.

Increase in interest charges

The finance or interest charges will increase from the current 3.60% per month to 3.75% per month. The annual interest charges will increase from the current 43.20% to 45.00%. The increase in interest rate will be applicable on all credit cards, except a few specified cards where there will be no change to the existing interest rate.

It is recommended to always pay the entire outstanding bill amount every month either before or by the due date. It will help you avoid the higher interest charges.

Increase in fee for payment failure

Axis Bank charges a fee on standing instructions (SI), NACH payment failure, auto debit reversal or cheque return. The fee is 2% of the payment amount or a minimum amount of Rs. 450 with a maximum capping of Rs. 1,500. From 20th December, the minimum amount will be revised to Rs. 500. Also, the maximum capping of Rs. 1,500 will be removed.

The change will apply to all Axis Bank credit cards except the Burgundy Private Credit Card, Olympus Credit Card, and Primus Credit Card.

You must ensure there is sufficient balance in the account to pay for the auto-debit instruction to avoid any payment failure fee.

Increase in cash payment fee at branches

Apart from using online payment modes to pay the credit card outstanding bill, you have the option to pay at the branch also. From 20th December, Axis Bank will charge a fee of Rs. 175 for cash payment at the branches. Currently, the fee is Rs. 100. You can make a maximum cash payment of Rs. 50,000 in a day.

The cash payment fee will apply to all Axis Bank credit cards except the Burgundy Private Credit Card, Primus Credit Card, and Insta Easy Credit Card.

It is recommended that you use online payment modes such as UPI, net banking, etc., for credit card bill payment rather than cash payment at the branch.

An additional charge of Rs. 100 for late payment

If the customer does not make a payment or the payment made is less than the minimum amount due (MAD) by the payment due date, the bank levies late payment charges (LPC). The existing LPC structure is as follows.

The existing LPC will continue to be applicable.

However, if the MAD payment is not made by the payment due date for two consecutive billing periods, the bank will levy additional charges of Rs. 100 from 20th December. The charges will continue to be levied for every billing period until the MAD for that billing period has been paid.

The charges will apply to all Axis Bank credit cards except the Burgundy Private Credit Card, Olympus Credit Card, and Primus Credit Card.

Increase in DCC from 1% to 1.5%

The dynamic currency conversion (DCC) markup fee will be increased from the current 1% to 1.5% from 20th December. The DCC change will apply to all Axis Bank credit cards except for the Burgundy Private Credit Card, Olympus Credit Card, and Primus Credit Card.

Through the DCC service, a customer can make an overseas transaction or at an international merchant in Indian Rupees.

Introduction of reward redemption fee

Axis Bank will be introducing a reward redemption fee for reward points redemption. The reward points can be redeemed for purchasing merchandise or gift vouchers, booking flight tickets, hotel accommodation, etc. The reward points can be converted or transferred to various airmiles and hotel loyalty programs also.

For redemption of Edge reward points or Edge Miles on the Edge portal, a Rs. 99 reward redemption fee will be levied. Similarly, for conversion or transfer of Edge reward points or Edge miles to other partner loyalty programs, a Rs. 199 reward redemption fee will be levied. The reward redemption fee cannot be paid with Edge reward points or Edge miles. The fee will appear as a separate line item in the customer’s credit card statement.

The reward redemption fee will apply to all credit cards except a few specified cards.

1% rent surcharge with no capping

Currently, Axis Bank charges a 1% surcharge on all rental transactions with a maximum fee capping of Rs. 1,500 per transaction. From 20th December, the maximum fee capping of Rs. 1,500 per transaction will be discontinued.

The above change will apply to all Axis Bank credit cards, except for Olympus Credit Card and Primus Credit Card.

1% fee on specified transactions

From 20th December, a 1% fee will be applicable on the following transactions:

1. Cumulative wallet loading transactions of Rs. 10,000 or more in a single statement period
2. Cumulative fuel transactions of Rs. 50,000 or more in a single statement period
3. Cumulative utility bill payment transactions of Rs. 25,000 or more in a single statement period
4. Cumulative spends of Rs. 10,000 or more in a single statement period on online skill-based gaming platforms

The above 1% fee applies to all Axis Bank credit cards if the spend in a statement cycle crosses the specified threshold.

1% fee on education transactions

A 1% fee will apply to education-related payments done through third-party apps or websites. There is no minimum or maximum amount capping on the fee charged. The fee will be charged on each education transaction separately and not on the cumulative education transactions in a statement cycle.

If the payment is made directly on the website of the education institution or its POS, the 1% fee will not be applicable.

The 1% fee on education-related transactions applies to all Axis Bank credit cards.

All the fees discussed in all the above sections are subject to GST as per Government regulations.

Fees help avoid the misuse of credit cards and sustain rewards program

Like other banks, Axis Bank keeps revising its credit card structure from time to time. The changes are done to discourage certain people from misusing credit cards for commercial purposes or doing transactions for others to gain reward points. The fees also help the bank to maintain the profitability of the reward points program. The bank can continue offering the reward points program on a long-term basis if it is sustainable.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.