Axis Bank credit card rules change August 28, 2026: DCC fee triples to 3.5%, rewards pulled from gift cards and tolls
From August 28, 2026 Axis raises the dynamic currency conversion fee to 3.5% on most cards, stops reward points on gift cards, tolls and road fees, and lifts the top late fee to Rs 1,300. Movie BOGO and lounge access get spend gates too.
Axis Bank is rewriting its credit card terms across the board. Most of it lands on August 28, 2026, with two spend gates following in October and November. None of it is in your favour.
The headline: DCC fee more than doubles
The Dynamic Currency Conversion fee is what Axis charges when you let an overseas merchant or ATM bill you in rupees instead of the local currency. This is separate from your card's normal foreign transaction fee, and it is going up sharply.
| Card family | Old DCC | New DCC |
|---|---|---|
| MyZone, Select, Privilege, Neo | 1.5% | 3.5% |
| Magnus, Magnus for Burgundy | 1.5% | 2% |
| Olympus | 1.5% | 1.8% |
On a Rs 1,00,000 bill converted at the point of sale, the fee on the standard cards jumps from Rs 1,500 to Rs 3,500 before tax. The rule of thumb has not changed: always choose to be billed in the local currency, never in rupees. Axis just made ignoring that advice more expensive.
Rewards pulled from whole categories
From August 28, these spends stop earning points or cashback on Axis cards:
- Gift card purchases. Gift cards are being reclassified out of the wallet category into their own "Gift Card" bucket. They will not earn rewards, and they will no longer count toward fee-waiver thresholds or milestone spend targets.
- Tolls, road fees, and bridge charges. Payments toward tolls, road fees, and bridge charges become ineligible for rewards or cashback.
Closing the gift card loophole is the bigger change in practice. Buying gift cards to hit a milestone or a fee waiver was a common workaround; that door is now shut.
Late fee goes up at the top slab
The late payment fee for the highest balance slab rises to Rs 1,300.
| Outstanding balance | Late fee |
|---|---|
| Up to Rs 500 | Nil |
| Rs 501 to Rs 5,000 | Rs 500 |
| Rs 5,001 to Rs 10,000 | Rs 750 |
| Rs 10,001 to Rs 50,000 | Rs 1,200 |
| Above Rs 50,000 | Rs 1,300 |
Two spend gates arrive later
- Movie BookOneGetOne (from November 1, 2026): MyZone, Select and Privilege holders must spend at least Rs 25,000 in the previous three months to keep the buy-one-get-one District movie benefit. Neo cardholders face the same Rs 25,000 threshold for BookMyShow. Newly issued cards are exempt for the issuance month plus the next three months.
- Select anniversary milestone (from October 1, 2026): the Rs 3 lakh anniversary threshold stays, but insurance, rent, fuel, education, utilities, telecom, wallet, gold and jewellery, government services and gift cards no longer count toward it.
Lounge access moves to the physical card
Domestic airport lounge access via Priority Pass ends; cardholders must present the physical Axis card at participating lounges instead. Complimentary memberships on Olympus and Select now renew only with explicit cardholder consent, from November 15, 2026.
What to do
If your Axis card earned its keep on gift cards, tolls, or point-of-sale currency conversion abroad, the math just changed. Check whether another card in your wallet still rewards that spend, and reprice your milestone plan without the gift card shortcut. Run your spend through the matcher to see which card actually pays for the categories Axis just excluded.
Sources
Every claim on this page is backed by a primary or reputable source.
Cards affected
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