Flipkart Axis Bank Credit Card Devaluation 2025: All Changes Explained

The popular Flipkart Axis Bank Credit Card is undergoing a significant transformation, with substantial revisions to its features and benefits set to take effect from June 20, 2025. These changes will impact cashback earnings on key platforms, alter the eligibility for lounge access, and refine how excluded transactions are identified. It is crucial for cardholders to thoroughly understand these new terms to adapt their spending strategies.

1. Key Changes in Features and Benefits:

The most prominent revisions center around the cashback structure and complimentary lounge access:

• Myntra Cashback Increased (with Cap): A significant positive change for fashion enthusiasts, the cashback on Myntra purchases will be increased to 7.5%, a substantial jump from the earlier 1%. However, this enhanced cashback comes with a maximum cap of INR 4,000 per statement quarter. This means you can earn 7.5% cashback on Myntra spends up to approximately INR 53,333 within a quarter. Any spending beyond this amount will not accrue further 7.5% cashback.
• Flipkart & Cleartrip Cashback Capped: While cardholders will continue to earn 5% cashback on Flipkart and Cleartrip, a new cap is being introduced. The maximum cashback that can be earned per statement quarter is INR 4,000 on Flipkart and INR 4,000 on Cleartrip. This implies that for spends exceeding INR 80,000 on Flipkart or INR 80,000 on Cleartrip within a given quarter, no further 5% cashback will be earned.
• Discontinuation of Complimentary Domestic Airport Lounge Access: This is a major change for frequent flyers. The benefit of 4 complimentary domestic airport lounge accesses will be completely discontinued. Cardholders who relied on this perk will need to seek alternative arrangements for lounge access from June 20, 2025.
• Statement Quarter Definition: Axis Bank has clearly defined the statement quarters based on your individual statement date. For instance, if your statement date is the 15th of every month, the quarters are:
  • 1st Quarter: 16th March – 15th June
  • 2nd Quarter: 16th June – 15th September
  • 3rd Quarter: 16th September – 15th December
  • 4th Quarter: 16th December – 15th March
• Cashback Crediting: The process for cashback crediting remains consistent. Cashback earned for purchases during a statement month will be credited within 3 days prior to the next statement generation date. For example, if your statement date is April 15th, cashback for transactions between March 16th and April 15th will be credited around May 12th.

The provided illustration clearly demonstrates how the quarterly caps will apply across Flipkart, Cleartrip, and Myntra. For instance, even with high spends, the maximum per-merchant quarterly cashback limit will be adhered to.

2. Changes to Spend Exclusion Approach:

While the fundamental categories excluded from earning rewards and spend-based fee waiver calculations remain unchanged, Axis Bank is simplifying the identification process:

• Category-Based Identification: Instead of relying on the 4-digit Merchant Category Code (MCC), excluded transactions will now be identified based on broader spend categories. This aims to provide greater clarity to cardholders.
• Excluded Spend Categories for Cashback:
  • Transactions made on Utility & Telecom
  • Education
  • Rent
  • Wallet load
  • Government services
  • Insurance
  • Gold & Jewellery
  • Fuel
  • Financial Institutions
  • Cash advances
  • Repayments
• Excluded Spend Categories for Spend-Based Fee Waiver Calculation:
  • Transactions made on Rent
  • Wallet load

Implications for Flipkart Axis Bank Credit Card Users:

These revisions necessitate a careful review of spending habits for existing cardholders.

• For High Spenders on Flipkart & Cleartrip: If your quarterly spending on these platforms consistently exceeds INR 80,000, you will experience a significant reduction in your earned cashback. Exploring alternative credit cards for these high-value transactions might become necessary.
• For Myntra Shoppers: The 7.5% cashback is a welcome boost, making the card highly rewarding for fashion purchases up to the INR 4,000 quarterly cap. This could encourage more frequent shopping on Myntra for those aiming to maximize this benefit.
• For Travelers: The complete removal of complimentary lounge access is a major drawback. If lounge access is a key factor for your travel comfort, you will need to seek out other credit cards or consider paid lounge memberships.
• For Overall Utility: While the core cashback benefits remain strong for Flipkart, Cleartrip, and Myntra (within the caps), the overall value proposition has shifted. Cardholders should weigh the continued benefits against the loss of lounge access and the new caps when deciding if the card still meets their financial needs.

Moving Forward:

Cardholders are advised to familiarize themselves with these revised terms and conditions well in advance of the June 20, 2025, effective date. Understanding the new quarterly caps and the excluded spend categories will allow for optimized card usage. For many, this devaluation might prompt a re-evaluation of their credit card portfolio to ensure they continue to maximize rewards and benefits aligned with their spending pattern.