Axis Bank
ACE
The Axis Bank ACE remains a top-tier cashback card, featuring a high 5% return on utility bills via Google Pay and a solid 1.5% unlimited base rate.
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Data last updated 25 May 2026.
At a Glance
Annual Fee
₹499
Joining Fee
₹499
Fee Waiver
Spend ₹2,00,000 annually
Lounge Access
4 domestic lounge access
Forex Markup
3.5%
Effective Yield
1.5% – 5%
Our Take
The Axis Bank ACE remains a top-tier cashback card, featuring a high 5% return on utility bills via Google Pay and a solid 1.5% unlimited base rate. However, the once-unlimited accelerated earnings are now restricted by a ₹500 combined monthly cap on utility and food delivery categories, diminishing its appeal for heavy spenders.While the ACE card was once the undisputed king of utility cashback, the 2026 landscape has forced a tactical shift. The 5% and 4% (Swiggy/Zomato/Ola) categories now share a restrictive ₹500 monthly cashback ceiling, meaning benefits peak at just ₹10,000 of monthly spend in these areas. An unbiased review must also highlight the spend-based lounge access: you now need to spend ₹50,000 in the previous quarter to unlock a single visit. Despite these hurdles, the unlimited 1.5% base cashback—which notably excludes rent, fuel, and insurance—and the low ₹2 lakh fee waiver threshold keep it a viable entry-level powerhouse.
Pros
- Market-Leading Utility Cashback: Offers a flat 5% cashback on electricity, gas, water, and internet bills, as well as DTH and mobile recharges. Since utility bills are a recurring 'dead' expense for every household, this remains the card's most valuable 'sticky' feature.
- Decent 1.5% Uncapped Base Rate: While devalued from its original 2%, the 1.5% base rate on all other online and offline spends is still higher than the 1% offered by most entry-level peers. Crucially, this base cashback has no monthly upper limit.
- Direct Cashback to Statement: Eliminates the hassle of reward portals or 'points' math. The cashback earned is automatically credited to your credit card statement in the following billing cycle, providing immediate and transparent value.
- High-Velocity Category Rewards: Earns a consistent 4% cashback on Swiggy, Zomato, and Ola. For urban professionals who rely on food delivery and ride-sharing, this covers three of the most frequent monthly spending 'buckets' outside of groceries.
- Attainable Fee Waiver: The ₹499 annual fee is waived upon reaching ₹2 Lakhs in annual spending. For most middle-income users, this makes the card effectively 'Lifetime Free' while still providing premium perks like airport lounge access.
Cons
- Strict Combined Monthly Cap: As of 2026, the 5% (Utility) and 4% (Food/Cabs) categories are subject to a combined monthly capping of just ₹500. This means any spending beyond ₹10,000–₹12,500 in these high-value categories earns zero accelerated cashback.
- The 'iOS Exclusion' Barrier: The 5% utility cashback is strictly available only for payments made via the Google Pay app on Android. iPhone users are effectively locked out of the card's best feature, making it a poor choice for the Apple ecosystem.
- High Spend-Based Lounge Hurdle: While the card offers 4 domestic lounge visits per year, they are now 'unlocked' only if you spend at least ₹50,000 in the previous three months. This quarterly spend-requirement is quite high for an entry-level cashback card.
- Extensive Reward Exclusions: No cashback is earned on 'big-ticket' essentials including Rent, Insurance, Education, Fuel, and Government services. Additionally, these categories do not contribute toward the ₹2 Lakh annual fee waiver threshold.
- Platform-Locked Utility Benefits: To earn the 5% cashback, you must pay via Google Pay. If you pay your electricity or broadband bill directly on a service provider's website or via other apps, you only earn the base 1.5% rate, which can be a point of friction for some users.
Earning & Redemption
How You Earn
| Category | Reward rate | Yield % | Cap |
|---|---|---|---|
| Google Pay Utilities (5% Cashback) | 5% Cashback | 5.00% | ₹500 per month (Combined with 4% category) |
| Preferred Merchants (4% Cashback) | 4% Cashback | 4.00% | ₹500 per month (Combined with 5% category) |
| All Other Retail Spends (1.5%) | 1.5% Unlimited Cashback | 1.50% | No Upper Cap |
| Excluded Categories | No Cashback | 0.0% | — |
Milestone Rewards
| Spend | Benefit | Value | Summary |
|---|---|---|---|
| ₹0.1 Lakh | Joining Fee Reversal0 pts | ₹499 + GST Savings | Joining fee is reversed if you spend ₹10,000 within 45 days of card issuance. |
| ₹2 Lakh | Annual Fee Waiver0 pts | ₹499 + GST Savings | Annual fee waived for the next year if annual spends exceed ₹2 Lakhs. |
Redemption Value
| Channel | Value per point | Verdict |
|---|---|---|
| Statement Credit (Direct) | ₹1.00 per ₹1 Cashback1:1 Ratio | Automatic (Credited directly to your card statement every billing cycle) |
What You Need to Know
The ₹500 Cap (New for 2026)
The 5% (Utilities) and 4% (Partners) categories share a total monthly cap of ₹500.
Impact: Spending more than ₹10,000 on utilities is pointless; yield drops to 0% after the cap.
Android Exclusivity
The 5% utility rate only triggers via Google Pay on Android devices.
Impact: iPhone users cannot access the 5% category; they effectively hold a 1.5% flat card.
Lounge Spend Trigger
Domestic lounge access requires a spend of ₹50,000 in the previous 3 months.
Impact: Casual 'utility-only' users will likely never trigger the lounge benefit.
Utility Loophole Closure
Utility payments made via any platform other than GPay earn 0% cashback.
Impact: Users MUST use the specific integration; bank bill-pay or Amazon Pay will yield nothing.
Essential Fine Print
Reward Exclusions
No Cashback Categories: Fuel spends, EMI transactions, Wallet loading, Rent payments, Government services, Insurance, Educational services, and Jewelry/Gold purchases.
Lounge Access
Domestic Lounge Access
4 complimentary lounge visits per calendar year at select domestic airports, subject to spending ₹50,000 in the previous calendar 3 months.
Dining Benefits
Dining Delights
Up to 15% discount at partner restaurants across India (up to ₹500 per month).
Milestone Benefits
Annual Fee Waiver
Renewal fee of ₹499 is waived upon reaching annual spends of ₹2,00,000.
Additional Features
Direct Cashback Credit
Cashback earned is automatically credited to the next month's credit card statement.
Contactless Payments
Equipped with Chip and PIN and contactless technology for secure transactions.
Fees & Charges
| Fee Type | Amount / Details |
|---|---|
| Joining Fee | ₹499 |
| Annual / Renewal Fee | ₹499 |
| Fee Waiver Threshold | Spend ₹2,00,000 annually |
| Forex Markup | 3.5% |
| Fuel Surcharge Waiver | 1% surcharge |
Eligibility Criteria
Age
Age between 18-70 years
Income
Must have a steady, verifiable income.
Residency
The individual should be a resident of India.
Ready to apply for ACE?
Annual fee: ₹499 · Waived on ₹2,00,000 spend
Annual fee
₹499
1.5% – 5% yield