Archive · 18 Aug 2026
Axis Bank hikes DCC markup to 3.5%, raises late fees
A credit card lets you pay for things now and pay the bill later.
Axis Bank, a bank in India, is changing some rules for its credit cards.
When people use an Axis Bank card in another country, they can choose to pay in Indian rupees instead of the local money.
That choice now costs more, because the extra charge, called the DCC markup, is going up from 1.5 percent to 3.5 percent.
A purchase of one lakh rupees will now have about ₹2,000 more in fees than before.
The bank is also raising the late fee for people who owe more than ₹50,000, which will become ₹1,300.
If you pay only part of the bill, the money will first go toward fees, then EMIs, interest and purchases.
From August 28, buying gift cards will no longer earn rewards or cashback.
Toll, bridge and road fees will also earn no rewards.
People who use the card while travelling should pick the local currency at checkout to avoid the extra charge.
Axis Bank is raising the DCC markup on credit cards from 1.5% to 3.5%, plus applicable taxes, for transactions settled in Indian rupees.
On an eligible ₹1 lakh DCC transaction, the pre-tax markup will rise from ₹1,500 to ₹3,500.
The late-payment fee for outstanding amounts above ₹50,000 will increase to ₹1,300, while lower slabs remain unchanged.
Credit-card payments will now be adjusted first toward fees and charges, then EMIs, interest, purchase transactions and cash advances.
From August 28, gift-card purchases will be classified as "Gift Card" and will not earn rewards, cashback or milestone-spend credit; bridge, road and toll fees will also earn no rewards.
- Who
- Axis Bank credit cardholders, particularly those making overseas or INR-settled transactions.
- What
- Axis Bank is increasing the DCC markup to 3.5%, revising late-payment fees, changing how payments are adjusted, and removing rewards on gift-card, bridge, road and toll transactions.
- When
- The gift-card reclassification takes effect from August 28; no effective date is stated for the DCC and late-fee changes.
- Where
- India; the DCC change applies to overseas transactions settled in Indian rupees and certain India transactions where the merchant is registered overseas.
- Why
- The bank is updating its credit-card fee, charge and rewards structure for cardholders.
- Bank
- Axis Bank
- New DCC markup
- 3.5% (up from 1.5%), plus applicable taxes
- DCC example (₹1 lakh transaction)
- Pre-tax markup rises from ₹1,500 to ₹3,500
- Late-payment fee above ₹50,000 outstanding
- ₹1,300
- Late-payment fee up to ₹500 outstanding
- Nil
- Gift-card rule effective date
- August 28
- No rewards on
- Gift cards, bridge fees, road fees and toll payments
- Payment adjustment order
- Fees and charges first, then EMIs, interest, purchases and cash advances