Axis Credit Cards 2024 Major Devaluation 3.0😡

Summary

In this video, Card Academy discusses significant changes to AXIS Bank's credit card terms and benefits, effective from December 20, 2024. These updates include increased interest rates, higher penalties for bounced checks, new fees for cash payments, and surcharges for certain transactions like rent payments, utility bills, and wallet loads. Additionally, a 1% surcharge will be levied on specific transactions, including fuel and education payments. The video emphasizes the importance of timely payments and understanding the new charges to avoid extra fees, while also noting the impact on card usage strategy and misuse prevention.

Takeaways

• 😀 **Increased Interest Rate**: A Bank has raised the interest rate for delayed payments from 3.6% to 3.75%, effective from December 20, 2024.
• 😀 **Higher Penalties for Returned Cheques**: The penalty for bounced cheques or failed auto-debits has been increased from ₹50 to ₹500, with no cap on the penalty.
• 😀 **Cash Payment Fee Revision**: A new fee of ₹1 per cash payment at the bank replaces the previous ₹1.75 fee for credit card payments.
• 😀 **Additional Penalty for Non-payment of Minimum Amount Due**: An additional ₹1 penalty will be applied for each billing cycle if the minimum amount due is not cleared for two consecutive months.
• 😀 **Dynamic Currency Conversion Markup Increased**: The markup fee for currency conversion has risen from 1% to 1.5%.
• 😀 **1% Rent Surcharge**: A 1% surcharge will be levied on all rent payments made via credit card.
• 😀 **Surcharge on Large Transactions**: Wallet loads over ₹10,000, fuel transactions above ₹5,000, and utility payments above ₹25,000 will incur a 1% surcharge.
• 😀 **Education Payment Surcharge**: Any education payments made through third-party apps will attract an additional surcharge, the exact fee varying by app.
• 😀 **Changes to Offers and Promotions**: The Buy One Get One Free movie ticket offer will now be available through Paytm, and some other promotional offers may be impacted by the new terms.
• 😀 **Encouraging Responsible Card Usage**: The changes aim to encourage responsible credit card usage and reduce misuse, in line with the bank's updated fair usage policies.

Q & A

What major changes has A Bank made to its credit card policies starting December 20, 2024?

A Bank has introduced several changes to its credit card policies, including increased interest rates, revised fees, and new charges. These changes will impact credit card users in areas such as overdue payments, cash payments, rent payments, and foreign currency transactions.

How has the interest charge on overdue payments changed?

The interest rate on overdue payments has been increased from 3.6% to 3.75% on all A Bank credit cards. This means cardholders will face higher costs if they miss payments.

What is the new fee for returned checks and auto-debit reversals?

The fee for returned checks and auto-debit reversals has been significantly increased. Previously, the fee was ₹50, but now it could go up to ₹500,000, and the cap on this fee has been removed.

What change has been made regarding cash payments at the bank?

For cash payments made at the bank, the fee has been revised from ₹1.75 to ₹1. This reduction aims to make cash payments slightly more affordable for customers.

What penalty will be applied if the minimum due amount is not paid for consecutive months?

If the minimum due amount is not cleared for two consecutive months, an additional penalty of ₹1 will be applied for each billing cycle until the outstanding balance is paid.

How has the dynamic currency conversion (DCC) markup fee changed?

The markup fee for dynamic currency conversion has increased from 1% to 1.5%. This means cardholders will pay higher fees for international transactions.

What new charges have been introduced for rent payments?

A 1% surcharge fee will now be applied to all rent transactions made using A Bank credit cards. Additionally, a ₹1500 reward redemption fee will apply to rent payments exceeding ₹999.

Are there any new surcharges for wallet loads and fuel transactions?

Yes, a 1% surcharge will now apply to wallet load transactions exceeding ₹1,000,000 in a billing cycle. Similarly, a 1% surcharge will be applied to fuel transactions above ₹5,000 in a billing cycle.

What surcharge is applicable on third-party app payments for education expenses?

A 1% surcharge will be applied to all education payments made through third-party apps, regardless of the transaction amount. The third-party app may also impose additional charges.

How will the new fees and charges affect the overall credit card usage?

These new fees and charges are aimed at reducing misuse and encouraging more responsible credit card usage. However, many users may feel that these changes could make A Bank credit cards less attractive compared to previous offerings.