Credit Cards

Home - Credit Cards
Axis Bank Introduces New Credit Card Fees Starting December 20, 2024: Key Details to Know Axis Bank has announced a significant overhaul of its credit card fee structure, which will come into effect from December 20, 2024. The changes will impact various types of transactions, including reward point redemptions, interest rates, and payment fees. This article provides an in-depth look at these changes and their potential effects on Axis Bank credit cardholders. New Credit Card Redemption Fees for EDGE Rewards and Miles One of the most notable changes is the introduction of new redemption fees for customers who use their EDGE Rewards or Miles. Axis Bank will charge a fee of Rs 99 (plus 18% GST) for customers redeeming cash from their reward points. For those transferring points to mileage programs, the redemption fee will increase to Rs 199 (plus 18% GST). This applies across several popular Axis Bank credit cards, including the Axis Bank Atlas, Samsung Axis Bank Infinite, and Axis Bank Magnus Credit Cards. However, customers holding Citi-protege cards like the Axis Bank Olympus and Horizon will not be affected by this change. To avoid these new fees, customers have the option to redeem or transfer their points before the December 20 deadline. Updated Credit Card Charges and Interest Rates Axis Bank has also revised several other charges for its credit cards. Starting December 20, the bank will implement the following key fee adjustments: Interest Rates: The monthly interest rate on outstanding balances will increase from 3.6% to 3.75%. This means that cardholders who carry a balance will face higher interest charges. Payment Charges: There will be additional fees for specific payment-related actions: Auto Debit Reversals and Check Returns: These will incur a 2% charge, with a minimum fee of Rs 500 and no upper limit. Cash Payments at Branches: A fee of Rs 175 will be charged for cash payments made at Axis Bank branches. Missed Payments: If the Minimum Amount Due (MAD) is not paid for two consecutive billing cycles, an additional penalty of Rs 100 will be applied. This penalty will continue until the MAD is cleared. Dynamic Currency Conversion (DCC): The markup for currency conversion on international transactions will increase from 1% to 1.5%, which could lead to higher costs for overseas spending. Changes to Rent Payment Charges In another significant change, Axis Bank will now apply a 1% fee on rent transactions made through their credit cards, with no maximum cap on the charge. This update means that cardholders using their credit cards to pay rent will incur a fee based on the total transaction amount, unlike before when there was a capped fee for such payments. Revised Charges for Specific Transactions Axis Bank has also implemented changes to fees for other types of transactions. Some of the major adjustments include: Utility Payments: If your utility payments, such as for electricity, water, mobile services, or broadband, exceed Rs 2.5 lakh per month, you will incur a 1% fee on the total transaction amount. Foreign Transactions: As mentioned earlier, foreign currency transactions will now incur a 1.5% markup due to the increase in dynamic currency conversion charges. Online Gaming and Skill-Based Transactions: A 1% fee will apply to online gaming or skill-based gaming transactions exceeding Rs 1 lakh per month. This change aims to regulate and possibly limit high-value transactions in this category. Conclusion: Impact of Axis Bank's New Credit Card Fees The new credit card fees introduced by Axis Bank are set to significantly impact cardholders, especially those who frequently redeem rewards, make international transactions, or use their cards for large payments such as rent and utilities. It’s crucial for Axis Bank credit card users to review these changes and take action before the new fees come into effect on December 20, 2024. If you are an Axis Bank cardholder, it may be worthwhile to redeem or transfer your reward points before the deadline to avoid the new redemption charges. Additionally, ensure that your payments are made on time to avoid the penalties associated with missed payments. By understanding these changes and planning accordingly, you can mitigate the financial impact and continue to enjoy the benefits of your Axis Bank credit card. This updated fee structure is likely to affect a wide range of users, and staying informed will help you manage costs effectively. Keep an eye on official communications from Axis Bank for further updates. Credit Cards

Axis Bank New Credit Card Fees From December 20, 2024

It is anticipated that beginning December 20, 2024 Axis Bank’s customers will be subject to fresh fees and meanwhile every…