Axis Bank Credit Cards is rolling out new changes on their Credit Card portfolio on December 20, 2024. The notifications of these changes are being posted just now.

New Redemption Fee to be introduced.

A new fee is being introduced effective December 20, 2024, on most Axis Bank Credit Cards. This fee will be charged when using your EDGE Rewards / EDGE Miles for redemptions as cash (INR 99) or when transferring to a mileage programme (INR 199). These amounts are ex-GST, so another 18% atop as taxes.

So that you know, these amounts will not be applied to all credit cards. Here are the ones I know of which will see the addition of the new charge:

• Axis Bank Atlas Credit Card
• Samsung Axis Bank Infinite Credit Card
• Samsung Axis Bank Credit Card
• Axis Bank Magnus Credit Card (including Burgundy Variant)
• Axis Bank Reserve Credit Card

The Citi-protegee, Axis Bank Olympus and Horizon have now been spared from this move.

I wouldn’t read much into this, except a very desi inclination to save costs or pass them on to customers for now. It seems Axis Bank incurs processing charges but wants to discourage customers from making small transfers, which ideally should not be the case. It is a sigh of relief that there is no change in the transfer ratios. But if you want to safeguard yourself from these fees, you would still do well to transfer some points out before the new fee sets in.

A lot of other changes in terms of fees are also coming up.

However, this is not the only change to Axis Bank credit cards. A whole host of other housekeeping fee changes are also coming up:

• Interest charges will be revised to 3.75% per month.
• The auto debit reversal or cheque return fee will be 2% of the payment amount, with a minimum fee of INR 500 and no maximum cap on the fee.
• The fee for cash payments at branches will be revised to INR 175.
• An additional INR 100 charge will be levied if the ‘Minimum Amount Due (MAD)’ is not paid for two consecutive cycles and will apply until the MAD is cleared.
• Dynamic Currency Conversion (DCC) markup will be revised to 1.5%.
• Rent transactions will incur a 1% transaction fee with the cap of INR 1,500 removed.
• A transaction fee of 1% will apply to education payments made via third-party apps. However, payments and transactions made directly through education institutional websites or their POS machines will not incur this fee.
• Cumulative spends exceeding INR 10,000 on wallet loads, INR 50,000 on fuel, INR 25,000 on utilities, and INR 10,000 on online skill-based gaming platforms within a statement period will attract a 1% transaction fee.

These changes will also be implemented on the Citi-migrated cards, not just the Axis Bank Credit Cards range. Note that many of these categories earn no points, but this is a change to be mindful of regardless, as Axis Bank is coming in line with the rest of the market in terms of charging money for wallet reloads and so on or limiting the misuse of personal cards as professional cards.

Bottomline

Axis Bank is instituting a fee for converting your EDGE Rewards/Miles to points effective December 20, 2024. Apart from this change, many other new housekeeping fees are being instituted or upped by Axis Bank. If you want to skip the costs, you should initiate your transfers before December 20, 2024.

What do you make of the new fees being put in place by Axis Bank?

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