Axis Bank raises DCC markup and revises card late fees from Aug. 28

Axis Bank will increase Dynamic Currency Conversion markup to 3.5% plus taxes, raise the late fee on balances above Rs 50,000 to Rs 1,300, and end rewards on toll and road charges. Gift cards will remain excluded from rewards, milestones and fee-waiver spends.

— Source published Fri, 21 Aug, 2026, 06:00 IST · First seen Fri, 21 Aug, 2026, 08:21 IST · Source NDTV Profit

What happened

Axis Bank will revise credit-card terms from Aug. 28, 2026, raising DCC markup and the late fee on balances above Rs 50,000. It will stop rewards on toll and

Key facts

  • Aug. 28, 2026
  • Dynamic Currency Conversion markup increased from 1.5% to 3.5% plus taxes
  • Late fee for outstanding balances above Rs 50,000 increased to Rs 1,300
  • No late fee below Rs 500
  • Rs 500 late fee for Rs 501-Rs 5,000
  • Rs 750 late fee for Rs 5,001-Rs 10,000
  • Rs 1,200 late fee for Rs 10,001-Rs 50,000

Why this matters

Axis Bank’s tighter rewards economics create an opening for merchant-funded loyalty, co-brand card, and payments-partnership deals that restore customer value.

What to watch

  • Axis card spend growth and active-card growth in the two quarters following Aug. 28.
  • Management commentary on card fee income, reward expense and credit-card revolve rates.
  • Customer complaints, social-media sentiment and reported card closures or downgrades.
  • Competitor launches of forex-fee, toll, fuel or fee-waiver promotions.
  • Changes in international travel spending, DCC transaction volumes and cross-border card usage.
  • Delinquency and write-off trends among customers carrying balances above Rs 50,000.
  • Targeted retention offers for high-spend and travel-card customers, including bonus points or annual-fee waivers.
  • Greater promotion of premium cards where higher fees and benefits can offset the less attractive base-card rewards proposition.
  • Tighter monitoring of delinquency and collections, as the higher late fee may increase repayments among some customers but worsen stress for others.
  • Potential expansion of exclusions to other low-margin or quasi-cash merchant categories if reward-cost savings prove material.
  • Rival issuers and fintech card programs may market zero-forex, lower-late-fee or broader reward propositions to capture dissatisfied Axis users.