Axis Magnus Magnus, Reserve & Other Axis Bank Credit Cards | Devaluation w.e.f. 1st Sep 2023.

[bugmenot]

-- Edited Post --

Final Update

Official PDFs are now out
Magnus - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/mgtc.pdf

Reserve - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/rstc.pdf

Revision of Axis Bank Miles/Rewards Transfer Program - https://www.axisbank.com/docs/defau...les-rewards-transfer-terms-and-conditions.pdf

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Update: 2nd August

MyZone - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/mztc.pdf
Privilege - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/pvtc.pdf
Select - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/sltc.pdf
Ace - https://www.axisbank.com/docs/default-source/default-document-library/credit-cards/actc.pdf

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Magnus devaluation highlights

1. Revision in welcome benefits, which are more or less matching with the leaked screenshots
2. Change in annual fee - ₹12,500 + GST
3. No more renewal benefit
4. Spend criteria for fee waiver is now double - 25L
5. Exclusion of government institutions and utilities MCCs for earning ERs
6. RIP 25,000ER/1L milestone benefit
7. Revised transfer ratio of 5:2
8. 5L ER points cap for transfer
9. Burgundy account scheme

Reserve devaluation highlights

1. Spend criteria for fee waiver is revised to 35L
2. Exclusion of government institutions and utilities MCCs for earning ERs
3. Revised transfer ratio of 5:2
4. 5L ER points cap for transfer
5. Burgundy private account scheme

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Aap Chronology Samajiye

• 📄 Few leaked screenshots of PDF started floating for Magnus and Reserve having potential devaulation
• 🐦Few folks on Twitter acknowledged the upcoming devaulation by contacting their RMs or insiders from CC department
• 🎧 Customer Care team were like "Whot Daa Phaak" is going on. They were unaware about these news, some were saying yes and some no
• 😡 Outrage | Speculation | Twitter Space | Points Transfer Tricks
• ✋ Then rumour mills started about devaulation being on hold
• 🔗 Official links of devaulation PDF started popping but "Darling of Cards" was missing
• 🔌 Axis pulled the plug and links started showing "404 - Not Found" except for unlucky Flipkart card
• 💣 BOMB - Axis Gift Edge devaulation
• 📩 Mass credit card cancellation and notice seeking clarification regarding commercial transactions
• 📉 Official PDF of Magnus and Reserve released
• 📉 Official PDF of MyZone, Privilege, Select and Ace released

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1. Flipkart - https://axisbank.com/docs/default-s...flipkart-credit-card-terms-and-conditions.pdf

Below given links are not opening now as they have been removed. You may check attached PDFs.

2. Reserve - https://axisbank.com/docs/default-s...-reserve-credit-card-terms-and-conditions.pdf
3. Select - https://axisbank.com/docs/default-s...k-select-credit-card-terms-and-conditions.pdf
4. Privilege - https://axisbank.com/docs/default-s...rivilege-credit-card-terms-and-conditions.pdf
5. MyZone - https://www.axisbank.com/docs/defau...-my-zone-credit-card-terms-and-conditions.pdf

By following the format, it is quite easy to create Magnus link, which could be https://axisbank.com/docs/default-source/default-document-library/credit-cards/axis-bank-magnus-credit-card-terms-and-conditions.pdf

 

[bonheur]

I have another theory in my mind about this whole thing. With so much media noise around this card, dozens of Magnus consulting shops that have been set up, and potentially crores worth of malpractices and bad assets (card payment defaulters, people selling points for money etc) suddenly floating around in the ecosystem, could RBI have stepped in and asked Axis to fix this mess?

 

[Deleted member 9785]

I have another theory in my mind about this whole thing. With so much media noise around this card, dozens of Magnus consulting shops that have been set up, and potentially crores worth of malpractices and bad assets (card payment defaulters, people selling points for money etc) suddenly floating around in the ecosystem, could RBI have stepped in and asked Axis to fix this mess?

Referals links me bhi lakho crore ka game ho gaya hoga

 

[srichaitanya]

I'm now relieved that my axis magnus application was rejected due to internal norms just a few days back.

 

[VijayflyRaven]

I am expecting crores of outflow from axis to hotel and airlines. I hope they honour the transfer done already and in future.

I also wonder if they need to give one month notice for changing the 5:4 to 5:1. Also they can remove some key partners temporarily until August.

 

[rogerthat]

After calming down and looking at it rationally, one can understand Axis Banks rationality behind this devaluation.

Axis wants Magnus to be a real super-premium card that rewards only the top most spenders. They want only super-high spenders in their portfolio who spend above 15 lakhs a year, and not chintu customers who spend 20k a month and then try to transfer that for free plane tickets to Bangkok.

16 lakhs spend will give you a return of around 8% which is still the best in the market.

A large majority of people will cancel their cards at the next renewal because it makes no sense to hold it at 1.2%, and that's exactly what Axis wants. They want to restore the sanctity of the product. Later on after the dust has settled they will probably introduce some other feature or relax transfer ratio to reward the top most spenders.

They also realised that people abusing the system by paying non-bonafide or non-discretionary spends in the form of utility bills and taxes to meet targets, so that too is gone. To compensate genuine users APay voucher limit on Gyftr was increased to 20k.

I think what happened was the sales heads under pressure to achieve targets had allowed their teams to issue Magnus to each and everyone. The product teams might have found that their product is being diluted, the finance dept found that they are bleeding badly because of the card. The must've been planning this for sometime but after the Mint article top management got in and put breaks to the madenss.

Like everyone in the forum says this is a classic case of utter mismanagement. Axis should've issued cards strictly according to ITR from the beginning. Issue unrealistic targets and you will get ultimately screwed. It is going to be very hard for Axis intended customers, the HNIs to trust the bank again. They can as well as kiss goodbye to CitiBank customers, of which I am one.

 

[manas_rock]

F

For 1 crore tax , you need multiple cards anyway. There are still a few cards which can give you cashback.

not on govt. I have infinia as well- it also stopped govt transactions.
Tax payment also has 0.5% surcharge. if cashback is just 1%, it is not worth the headache.

 

[manas_rock]

3 crores income nets around 1 crore tax. With 2 crores net income, definitely he needs many super premium cards and this devaluation is insignificant for him.

but my spend is primarily on tax paymeny only.

 

[neogen]

After calming down and looking at it rationally, one can understand Axis Banks rationality behind this devaluation.

Axis wants Magnus to be a real super-premium card that rewards only the top most spenders. They want only super-high spenders in their portfolio who spend above 15 lakhs a year and not chintu customers who spend 20k a month and then try to transfer that for free plane tickets to Bangkok.

A large majority of people will cancel their cards at the next renewal because it makes no sense to hold it at 1.2%, and that's exactly what Axis wants. They want to restore the sanctity of the product. Later on after the dust has settled they will probably introduce some other feature or relax transfer ratio to reward the top most spenders.

They also realised that people abusing the system by paying non-bonafide or non-discretionary spends in the form of utility bills and taxes to meet targets, so that too is gone. To compensate genuine users APay voucher limit on Gyftr was increased to 20k.

I think what happened was the sales heads under pressure to achieve targets had allowed their teams to issue Magnus to each and everyone. The product teams might have found that their product is being diluted, the finance dept found that they are bleeding badly because of the card. The must've been planning this for sometime but after the Mint article top management got in and put breaks to the madenss.

Like everyone in the forum says this is a classic case of utter mismanagement. Axis should've issued cards strictly according to ITR from the beginning. Issue unrealistic targets and you will get ultimately screwed. It is going to be very hard for Axis intended customers, the HNIs to trust the bank again. They can as well as kiss goodbye to CitiBank customers, of which I am one.

Yes, but it doesn't explain reduction in transfer rate from 5:4 to 5:1

 

[rajat30]

To compensate genuine users APay voucher limit on Gyftr was increased to 20k.

I don't think this is related, seems more like APay change from Amazon/Gyftr because this is applicable to HDFC gyftr also

 

[rogerthat]

Yes, but it doesn't explain reduction in transfer rate from 5:4 to 5:1

It does is what I feel. The biggest attraction of the card was the transfer rate. The best way to push low spenders out was to reduce transfer rates. Ultra high spenders will still get 1L miles for 16L spends which more than decent. Nobody would mind paying 10k a year if they can spend 5L on the card to get return tickets to Singapore for two. That was simply not sustainable with the volume of sales Magnus was doing.

Believe me, I am a product manager/marketer and this is exactly what I would've done to restore my product position in the market if I didn't care about my customers.

 

[rogerthat]

Also, unlike the Axis guys my bosses aren't idiots and would've never allowed diluting the product to this level 😆

 

[Consultant]

It does is what I feel. The biggest attraction of the card was the transfer rate. The best way to push low spenders out was to reduce transfer rates. Ultra high spenders will still get 1L miles for 16L spends which more than decent. Nobody would mind paying 10k a year if they can spend 5L on the card to get return tickets to Singapore for two. That was simply not sustainable with the volume of sales Magnus was doing.

Believe me, I am a product manager/marketer and this is exactly what I would've done to restore my product position in the market.

The easiest way to get low spenders out was to increase the cap to 1.25L/ month of genuine transactions - no wallets, no fuel, no emi, no govt. And also removal of renewal benefits of 10k.
For low spenders, that should have been enough.

 

[neogen]

It does. The biggest attraction of the card was the transfer rate. The best way to push low spenders out was to reduce transfer rates. Ultra high spenders will still get 1L miles for 16L spends which more than decent. Nobody would mind paying 10k a year if they can spend 5L on the card to get return tickets to Singapore for two. That was simply not sustainable with the volume of sales Magnus was doing.

Believe me, I am a product manager/marketer and this is exactly what I would've done to restore my product position in the market.

It defies the logic. Why - 25K ER was applicable on spending 1L and above. That can be done by weeding out expense categories, which they did. Reducing the transfer rate will erode the trust of genuine high spenders and they may not even want to have any ongoing relationship with Axis. 25k was the very reason for me to get Magnus, else I was happy with Axis Vistara infinite, Inifina and Amex Plat.

BTW, these are my recent stats with Axis

 

[nigameash]

It does. The biggest attraction of the card was the transfer rate. The best way to push low spenders out was to reduce transfer rates. Ultra high spenders will still get 1L miles for 16L spends which more than decent. Nobody would mind paying 10k a year if they can spend 5L on the card to get return tickets to Singapore for two. That was simply not sustainable with the volume of sales Magnus was doing.

Believe me, I am a product manager/marketer and this is exactly what I would've done to restore my product position in the market.

How are you calculating 1L miles? You get 96k points on the regular spends for 16L plus an additional 25k*12 (300k) if you hit milestones every month bringing that up to a total of 3.96L Edge points. With a .2 conversion, that’s only 79k Miles on any FF program.

 

[neogen]

The easiest way to get low spenders out was to increase the cap to 1.25L/ month of genuine transactions - no wallets, no fuel, no emi, no govt. And also removal of renewal benefits of 10k.
For low spenders, that should have been enough.

Exactly the point. Increase the cap or make it tiered.. but reducing the transfer rate is illogical and foolhardy on Axis's part.

 

[CMGCMG is verified member.]

The product that is hit hard is Reserve. No milestone. 1.5% reward rate. No priority pass in India. Only segregation and revaluation will redeem Reserve.

 

[Deleted member 9785]

How are you calculating 1L miles? You get 96k points on the regular spends for 16L plus an additional 25k*12 (300k) if you hit milestones every month bringing that up to a total of 3.96L Edge points. With a .2 conversion, that’s only 79k Miles on any FF program.

5 lac points = 1 lac miles

So instagram reels and youtube lifestyle videos are gone forever. The big pain behind the cries

 

[Chaitanya-a]

The product that is hit hard is Reserve. No milestone. 1.5% reward rate. No priority pass in India. Only segregation and revaluation will redeem Reserve.

Reserve should've been spared. This will erode trust of HNIs from Axis for sure. 50k fee card is uncommon between masses. It is specifically for HNIs.

10k is still acceptable. Although shock of 75% devaluation is pretty discouraging for its loyal customers.

 

[Heehaahee]

Axis thai spa pe 45x deta toh kya baat thi

69X dega abse

 

[amitr29]

People dug their own grave by using loopholes like reissuing credit card and getting additional tata cliq vouchers. Also, 5:4 ratio was surreal and everyone knew party will not last for long. This was bound to happen. And if this news is fake for now, this will be a reality soon.

Anything, which comes so much into limelight will get devalued eventually. I feel DCB and Infinia are next in line. People are queing up for these cards and writing to Grievance cell. Eventually, bank will think that even if we reduce benefits slightly, there will be demand. They will also ease onboarding norms and once people are in, reduce benefits.