Forex Fees Slashed & Cashback Rules Changed — What Amazon Pay ICICI Cardholders Must Know

Overview of Upcoming Changes in Amazon Pay ICICI Credit Card

The Amazon Pay ICICI Bank Credit Card is getting a significant makeover effective October 11, 2025, that affects millions of users, including myself and majority of Earn That Spend community. While the card maintains its lifetime free status, new spending restrictions will change how users earn rewards. The most notable improvement targets international travelers with substantially lower forex charges.

Key Update – Lower International Forex Mark-up (1.99%)

International forex markup drops from 3.5% to 1.99%. This saves ₹150 on every ₹10,000 spent abroad. The reduction makes overseas spending slightly cheaper now.

Why This Update Matters for Frequent International Travelers

At 1.99%, this becomes one of India's lowest forex rates for a free card, which is often seen in most of the travel-oriented credit cards like Tata Neu Infinity SBI Card, SBI ELITE Credit Card and many others. Travelers save substantial money on foreign purchases. The card now works well for both daily use and international trips.

Revised Cashback Exclusions (Effective October 11, 2025)

New restrictions remove cashback from several spending categories. This impacts the most as there will be:

• No Cashback on Gold Coins, EMI, Rent, Tax Payments, Education on Amazon

• No Cashback on EMI, Rent, Fuel, Utilities, Tax, Education, and International Spends Outside Amazon

Detailed Transaction Categories & MCC Codes Explained

Exclusions apply to specific codes: Utilities (4899-4902 series), Rent (7014, 7407, 5271, 6513), Fuel (1361-9752 series), Tax (9311, 9313), Education (8211-7911 series).

Who Benefits the Most from These Changes?

Amazon Prime Customers vs Non-Prime Customers

Prime members emerge as clear winners. With 5% cashback on Amazon purchases, they only need to spend ₹30,000 annually to recover the ₹1,499 Prime fee through rewards alone. Non-Prime users face a tougher choice - their 3% rate looks modest compared to alternatives like SBI Cashback's 5% on all online spends.

Online Shoppers vs Frequent Travelers

Here's where it gets interesting: heavy Amazon shoppers actually lose out if they were using this card for bill payments and utilities. A user spending ₹50,000 monthly on bills previously earned ₹6,000 yearly in cashback - that's now zero. Meanwhile, frequent international travelers gain significantly. Someone spending ₹2 lakh abroad annually saves ₹3,000 just from the reduced forex markup (1.5% difference on ₹2 lakh). The card essentially shifted from rewarding domestic bill payers to favoring international spenders.

Heavy Bill Payers (Utilities, Rent, Education) – The Real Losers

Heavy bill payers are the biggest losers in this update. Users who previously earned 1% cashback on utility bills, rent payments, and education fees will lose all rewards on these categories. These users should consider switching to cards like Axis ACE (5% via Google Pay) or SBI Cashback (5% on online bill payments) for better returns on essential expenses.

Pros & Cons After October 2025 Update

Strong Advantages (Cashback, No Annual Fees, Forex Reduction)

Lifetime free status, unchanged 5% Amazon cashback for Prime members, reduced forex from 3.5% to 1.99%, continued fuel surcharge waiver.

Limitations (Cashback Exclusions, Certain Categories Removed)

No cashback on utilities, rent, education, and fuel outside Amazon, as noted above. Users lose rewards on everyday spending categories.

Benefits That Remain Unchanged

All core rewards continue without modification. Like:

• Lifetime Free Card With No Joining or Annual Fees

• Cashback for Amazon Prime Customers – 5% on Amazon & Travel Bookings

• Cashback for Non-Prime Customers – 3% on Amazon & Travel Bookings

• 2% Cashback on Amazon Pay Partner Categories

• 1% Cashback on All Other Spends

• No-cost EMI on Eligible Amazon.in Purchases

• 1% Fuel Surcharge Waiver Across India

Final Verdict – Should You Still Keep the Amazon Pay ICICI Bank Credit Card?

Comparison With Other Top Cashback Credit Cards in India

SBI Cashback offers 5% on all online spends for ₹999 annually. Axis ACE provides 5% on Google Pay bill payments for ₹499. Amazon card's lifetime free status remains competitive.

Best Use Cases After October 2025

Keep if you're an Amazon Prime member, want a lifetime free card, travel internationally occasionally, or use Amazon Pay for bookings.

Skip if you primarily pay bills through cards, need broad cashback categories, or rarely shop on Amazon. The card becomes specialized for Amazon users while losing appeal for general cashback seekers.