Axis Bank is scaling back rewards and increasing costs on its premium Magnus for Burgundy credit card starting August 28. Changes include ending reward points for gift cards and FASTag, alongside a higher markup on international transactions.
Detailed Coverage
Axis Bank is updating the benefit structure for its premium Magnus for Burgundy credit card, with several key changes scheduled to take effect on August 28, 2026. These revisions follow a wider industry trend where major credit card issuers are adjusting reward programs to better manage operational costs and curb the misuse of high-value point accrual categories.
Rewards and Transaction Costs
Starting August 28, cardholders will stop earning reward points on two major spending categories: gift card purchases and toll payments, which includes FASTag. While the bank noted that gift card purchases were already excluded from point accrual, the formalizing of this policy indicates a move toward tighter monitoring of transaction types. Additionally, international spending will become costlier for those who use Dynamic Currency Conversion (DCC). The bank is increasing the DCC markup from 1.5% to 2%. This fee is charged when a customer chooses to pay in Indian Rupees at an international merchant, rather than the local currency of the country where the transaction occurs.
Access and Fee Adjustments
Access to domestic airport lounges is also seeing a shift. The bank will discontinue the use of the Priority Pass program for domestic lounge entries. Moving forward, cardholders must present their actual physical credit card along with a valid boarding pass to gain entry into eligible domestic lounges. International lounge access remains unchanged under current policies. Furthermore, the bank is increasing the late payment fee for balances exceeding Rs 50,000, raising it to Rs 1,300 from the previous Rs 1,200. The bank also announced that complimentary memberships associated with the card will require the user to provide explicit consent for renewal beginning November 15, 2026.
Industry and Investor Context
These adjustments come as part of a broader strategy by banks to optimize the cost-to-benefit ratio of premium credit card offerings. In the competitive Indian credit card market, banks often launch aggressive reward programs to acquire high-net-worth customers, only to calibrate these benefits later as portfolios scale and usage patterns stabilize. Investors generally monitor such changes as they can indicate management's focus on improving margins within the retail banking and cards division. The impact of these changes on customer retention and card usage levels will be a key factor for the bank's future retail banking performance metrics, which are typically reviewed in quarterly earnings reports.