As of June 2025, credit card issuers and banks are making a series of updates that could impact your wallet. From changing cash back rates to new fees, reward program cuts, and legislative threats to travel perks — there’s a lot happening. If you rely on your credit cards for rewards, everyday spending, or travel benefits, these updates matter.
Here’s a breakdown of the most important credit card changes this month and what you should consider.
1. Bank of America Increases Promotional Cash Back Rates
Bank of America has launched higher introductory cash back offers on two of its most popular cards:
- Customized Cash Rewards now offers 6% cash back in your chosen category for the first year (previously 3%).
- Unlimited Cash Rewards offers 2% back on all purchases during the first year (previously 1.5%).
Both cards include a $200 bonus for new users.
Source: Bank of America newsroom
2. Kotak Mahindra Bank Adds Fuel Fee
Kotak Mahindra Bank is implementing a 1% fee on fuel transactions for select credit cards, once spending crosses a defined limit in a billing cycle. The move targets high-volume fuel charges.
Source: The Economic Times
3. HDFC Bank Ties Lounge Access to Spending
HDFC Bank has changed how lounge access works for Tata Neu Infinity and Tata Neu Plus cardholders. Rather than swipe-based access, users now receive access vouchers based on reaching quarterly spending targets.
Source: The Economic Times
4. Axis Bank Revises Card Benefits
Axis Bank has updated two of its popular credit cards:
- Flipkart Axis Bank Credit Card: Boosts cashback on Myntra but removes free airport lounge access.
- REWARDS Credit Card: Revises the structure for point accumulation and redemptions.
These changes take effect in late June.
Source: The Economic Times
5. PayPal Launches Physical Credit Card with BNPL Features
PayPal has introduced a physical credit card linked to PayPal Credit, allowing cardholders to use Buy Now, Pay Later features in-store wherever Mastercard is accepted. This marks a major step in blending BNPL and traditional credit.
Source: PYMNTS
6. Airline Loyalty Programs May Shrink if New Bill Passes
A new bill in Congress — the Protect Your Points Act — proposes capping interchange fees (swipe fees) that fund many credit card rewards programs. Airlines warn this could force them to reduce or eliminate popular loyalty perks.
Source: The U.S. Sun
7. Virtual Credit Cards Becoming the Norm
Banks are investing more into virtual cards, which generate one-time use numbers for safer online purchases. These are now being integrated into mobile wallets and preferred by younger, tech-savvy consumers.
Source: PYMNTS
What This Means for You
With all these shifts, here’s how to stay ahead:
- Review your credit card terms and benefits.
- Look for new fees or reduced rewards, especially on travel or fuel.
- Take advantage of limited-time offers if you’re looking to open a new account.
- Keep an eye on policy changes — especially those related to federal regulations.
- Consider using virtual cards for added online security.
Credit card terms and perks are changing fast. Staying informed helps you make smarter financial decisions and avoid surprises.
Want more breakdowns like this? Explore our latest posts in the Credit Cards section of New Credit Finance.