Axis Bank revises credit card rules: How they affect you?
What's the story
Axis Bank has announced a revision in its credit card terms and conditions, effective from August 28. The changes include an increase in the markup on eligible dynamic urrency Conversion (DCC) transactions and a revised late-payment fee structure for higher outstanding dues. The bank's updated most important terms and conditions (MITC) for credit cards detail these changes.
Markup hike
Increased DCC markup for international transactions
The most significant change is the hike in DCC markup from 1.5% to 3.5%, plus applicable taxes.
The change applies when a customer uses an Axis Bank credit card abroad and opts for payment in Indian rupees instead of the local currency.
It also applies to select transactions in India where the merchant is based abroad.
Fee revision
Revised late payment fee structure
Along with the DCC markup hike, Axis Bank is also revising its late-payment fee structure.
For outstanding amounts over ₹50,000, the new late-payment fee will be ₹1,300.
The revised slabs from August 28 are: Up to ₹500: Nil; ₹501-₹5,000: ₹500; ₹5,001-₹10,000: ₹750; and above ₹10,001-₹50,000: ₹1,200.
The bank has clarified that lower slabs remain unchanged in this revision.
Payment adjustment
Other changes in conditions
The revised terms also clarify how Axis Bank will adjust partial payments against outstanding credit-card dues.
Payments will first be appropriated toward fees and charges, including taxes, followed by EMIs, interest, purchase transactions, and cash advances.
Notably, from August 28 onward, gift card purchases will be classified separately as "Gift Card" instead of under the wallet category.