Major Credit Card Changes in June 2025: Lounge Access, Reward Points, and Fee Updates You Need to Know
As of June 2025, some of the largest credit card issuers are implementing sweeping changes to their credit card policies.
Customers of HDFC Bank, Kotak Mahindra, Axis Bank, and American Express will notice adjustments to lounge access rules, reward point eligibility, fee structures, and spending criteria for key benefits.
These updates are part of a broader trend in the financial industry, where banks are refining benefit programs to improve profitability and encourage responsible card usage.
Below, we break down the most important changes by bank and offer expert insights on how to adapt.
HDFC Bank: No More Swipe-to-Enter Lounge Access
Starting June 10, 2025, HDFC Bank will modify lounge access policies for its Tata Neu Infinity and Tata Neu Plus credit cards.
Cardholders will no longer be allowed to swipe their cards directly to access airport lounges.
Instead, HDFC will adopt a voucher-based system, issuing lounge access vouchers to customers who meet specific quarterly spending thresholds.
This move is designed to limit automatic access and align lounge benefits with spending behavior.
For frequent travelers, this change means they must plan their spending to maintain lounge privileges, shifting away from the previously seamless entry experience.
Many customers have expressed concern that this may make lounge access more complicated, but it also introduces a performance-based model that aligns perks with active usage.
Kotak Mahindra: New Charges and MAD Calculation Changes
Effective June 1, 2025, Kotak Mahindra Bank will introduce several new charges and operational updates for its credit cards. These include:
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A new fee for failed standing instructions, such as insufficient balance for auto-payments.
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Dynamic currency conversion (DCC) charges on international transactions.
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Additional fees for specific spending categories, including:
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Utility bill payments;
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Educational expenses;
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Wallet top-ups;
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Skill-based gaming transactions;
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Fuel purchases.
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Additionally, the bank will implement a new formula for calculating the Minimum Amount Due (MAD) on outstanding balances.
This change could make it more challenging for customers who only pay the minimum amount monthly, increasing the risk of carrying higher interest charges.
For consumers who use credit cards to manage monthly budgets, it is now more important than ever to review billing statements carefully and fully understand the impact of these new fees and policies.
Axis Bank: Mixed Changes in Benefits and Spending Rules
From June 20, 2025, Axis Bank will apply revised terms to two major cards: the Flipkart Axis Bank Credit Card and the REWARDS Credit Card.
Flipkart Axis Bank Credit Card
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Increased cashback benefits on purchases made through Myntra, strengthening Axis’s retail partnership.
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Removal of complimentary airport lounge access, a previously valuable perk for cardholders.
While the additional cashback on Myntra may appeal to fashion-focused shoppers, the loss of lounge access could be a deal-breaker for travelers who relied on this benefit as a key feature of their card.
REWARDS Credit Card
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Introduction of new exclusions in reward-eligible transactions, meaning not all purchases will contribute to earning points.
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Stricter criteria for annual fee waivers, potentially requiring higher yearly spending thresholds.
These changes suggest a strategic shift toward rewarding targeted partnerships and higher-value users, while reducing costs associated with high-maintenance perks.
American Express: Fuel No Longer Earns Reward Points
American Express will roll out a significant adjustment to its Gold Charge Card beginning June 12, 2025.
Going forward, fuel purchases — including petrol, diesel, and CNG made at Oil Marketing Companies (OMCs) — will no longer earn Membership Rewards points.
This change is especially impactful for cardholders who frequently use their Amex Gold Card for fuel, as it lowers the overall potential to accumulate reward points.
As a result, users may consider switching to other payment methods for fuel-related expenses.
With fuel often being a major recurring expense for cardholders, this move may shift reward optimization strategies for many users who had relied on fuel purchases to accumulate points quickly.
| Factor | Current Situation | Impact of Changes |
|---|---|---|
| 💳 Misuse of Premium Benefits | Premium benefits often used by low-spending users | Changes aim to curtail misuse and target high-value customers |
| 💰 Profitability Focus | Credit card providers often rely on broad user benefits | Shift towards high-margin categories like travel and e-commerce to enhance profitability |
| ⚠️ Risk Mitigation | Risk associated with volatile or fee-heavy spending areas | Changes help mitigate risks by focusing on more stable spending categories |
| 🤝 Brand Partnerships | Limited partnerships with e-commerce and travel platforms | Changes strengthen partnerships, boosting collaboration with key platforms |
| 📊 Data Analytics | Traditional benefit allocation methods | Data-driven adjustments target higher-value customer segments for better long-term returns |
What Should Cardholders Do?
To make the most of your credit cards despite the upcoming changes, consider the following strategic actions:
1. Read All Policy Updates Carefully
Don’t ignore emails or SMS notifications from your bank. These messages often contain critical details about benefit changes, exclusions, and eligibility requirements.
2. Strategically Plan Your Spending
To qualify for lounge vouchers or maintain annual fee waivers, you may need to track your quarterly and annual spending habits more closely.
3. Compare and Consider Other Cards
With several benefits being downgraded, this may be a great time to explore alternative credit card options that better match your spending style and travel habits.
4. Avoid Charges on Non-Reward Categories
Try to limit transactions in excluded categories, such as fuel or utility bills, and focus on purchases that still offer valuable rewards.
5. Use Tools to Monitor Rewards
Consider using financial apps or your card’s mobile portal to track eligible categories, reward points, and progress toward fee waivers or vouchers in real-time.
Final Thoughts
The credit card ecosystem is evolving rapidly in 2025, and June marks a pivotal month in that shift.
As banks tighten benefit eligibility, revise fee structures, and realign partnerships, cardholders must become more proactive and informed to protect the value they receive.
This new landscape means individuals need to evaluate their spending habits and adjust their strategies accordingly.
These updates should not be seen solely as downgrades — they can also serve as opportunities to reevaluate spending behavior, optimize benefit usage, and select better-aligned financial tools.
It’s a chance to identify new credit card options that offer more favorable terms and rewards suited to one’s current financial goals.
Ultimately, those who stay alert and informed can continue to maximize rewards, minimize costs, and enjoy the strategic perks of using credit cards wisely.
Staying engaged with industry changes can lead to more financial flexibility, ensuring that credit cards remain a powerful tool for managing spending and optimizing financial outcomes.
