The Airtel Axis Credit Card has long been seen as one of the most rewarding options for everyday users, especially for those who use it for Airtel recharges and utility bill payments. It is known for offering up to 25% cashback on Airtel purchases and 10% cashback on utilities. It stands out in a market where most credit cards provide little or no rewards for bill payments.
However, the card has recently changed in a significant way. Axis Bank has added a convenience fee that affects the actual cashback users get. Previously, there was a 1.75% convenience fee on certain utility transactions made through the Airtel Thanks App. This fee has now increased to 2.24%, which effectively lowers the net cashback from 10% to 7.76% on those transactions.
While official card benefits still list 10% cashback on utility bill payments through the Airtel Thanks App, users have noticed that the new fee has already taken effect. Interestingly, Axis Bank has not communicated this update to cardholders.
Current Structure of Airtel Axis Credit Card Cashback
- 25% cashback on Airtel mobile, broadband, Wi-Fi, and DTH recharges.
- 10% cashback on utility bill payments via the Airtel Thanks App.
- ₹250 monthly cashback limit for utility and Airtel purchases combined.
The new convenience fee means that even though users technically earn 10% cashback, the actual savings drop to 7.76% after the 2.24% charge is deducted. For instance, on a ₹1,000 electricity bill, users would earn ₹100 cashback but pay ₹22.40 as a convenience fee, reducing the real benefit to ₹77.60.
This change has disappointed loyal users who mainly use the card for utility payments. Most credit cards in India either exclude utility bills from reward categories or offer minimal benefits, which previously made the Airtel Axis Credit Card a standout option. This update might be part of a broader cost adjustment by the issuer, as cards offering high cashback on low-margin categories like utilities often encounter sustainability challenges. Utility spending generates limited revenue for banks, and since most users avoid interest charges, keeping a flat 10% cashback could be financially difficult.
Users have noticed that bill payments made through Google Pay using this card do not incur the same convenience fee. This creates a potential workaround for those wanting to keep their full benefits.
Bottom Line
The Airtel Axis Credit Card still provides one of the highest effective cashback rates on utility bill payments, even after the recent fee increase. With a 7.76% net benefit, it remains more rewarding than most competitors, which typically offer 1–2% or none on utility spending. However, this quiet introduction of higher convenience charges raises concerns about possible future devaluations. For now, users should monitor their statements closely, compare transaction fees across different platforms, and decide if the card still aligns with their spending habits.
About The Author
