Axis Bank to raise DCC markup to 3.5% and late-payment fee to ₹1,300

Effective August 28, 2026, Axis Bank will raise eligible credit-card DCC markup from 1.5% to 3.5% plus taxes. The late-payment fee for outstanding balances above ₹50,000 will rise to ₹1,300, while select gift-card, bridge, road-fee and toll spends will lose rewards and milestone eligibility.

— Source published Tue, 18 Aug, 2026, 13:07 IST · First seen Tue, 18 Aug, 2026, 13:23 IST · Source Business Today · Latest

What happened

Axis Bank will raise eligible credit-card DCC markup to 3.5% and increase the late-payment fee on dues above ₹50,000 to ₹1,300. Gift-card, bridge, road-fee and

Key facts

  • DCC markup increases from 1.5% to 3.5% plus taxes
  • Late-payment fee for outstanding balances above ₹50,000 rises to ₹1,300
  • Late-fee slabs: ₹501–₹5,000: ₹500; ₹5,001–₹10,000: ₹750; ₹10,001–₹50,000: ₹1,200
  • Example ₹1 lakh DCC transaction markup rises from ₹1,500 to ₹3,500

Why this matters

The move creates an opening for card issuers, fintechs and travel-payment partners to differentiate with lower foreign-currency fees, clearer pricing and broader rewards coverage.

What to watch

  • Axis Bank disclosure of DCC transaction volumes, card-spend mix, fee income and credit-card receivables after implementation.
  • Competitor responses from major Indian issuers on forex markups, DCC fees, travel-card offers and late-payment charges.
  • Customer-service complaints, social-media backlash or regulatory scrutiny related to DCC disclosure and fee transparency.
  • Changes in Axis card usage at gift-card merchants, toll operators, road-fee platforms and bridge-payment channels.
  • Delinquency, roll-rate and balance-transfer trends among Axis customers with outstanding balances above ₹50,000.
  • Promote lower-fee forex, zero-DCC or travel-card alternatives before the August 28 effective date.
  • Increase customer education at international checkout and point of sale encouraging local-currency billing where it is cheaper than DCC.
  • Monitor Axis card acceptance and conversion rates among travel, airline, hotel, cross-border e-commerce and foreign merchant categories.
  • Adjust gift-card and toll-payment promotions toward bank-transfer, wallet, debit-card or alternative-credit-card rails.
  • Review loyalty economics, since reduced eligible spend may lower milestone attainment and alter customer reward-redemption behavior.