Has Your Favorite Amazon Pay ICICI Bank Credit Card Been "Devalued"? Let's Break Down the Changes.

The Amazon Pay ICICI Bank Credit Card has long been a go-to for online shoppers, offering a solid cashback proposition, especially for Prime members. It's been a truly "lifetime free" card, making it an easy choice for many. But recent changes, effective October 11, 2025, have sparked quite a conversation among cardholders, with many using the dreaded "D-word": devaluation.

So, what's really going on? Let's dive into the good, the bad, and what it all means for your wallet.

The Silver Lining: A Welcome Cut in Forex Fees!

Let's start with a positive! If you're someone who frequently shops on international websites or travels abroad, you'll be pleased to know that the foreign transaction markup fee has been significantly reduced from 3.5% to a much more competitive 1.99%.

This is a genuinely good move, bringing the card more in line with premium travel cards for international spending. For many, this could mean real savings on those overseas purchases or when using the card on your next international trip.

The Big Blow: Cashback Gone from Key Categories

Now for the part that has everyone talking. ICICI Bank has removed cashback benefits from several significant spending categories. If you used your Amazon Pay ICICI card for any of the following, you'll no longer earn rewards:

Utility Bill Payments
Rent Payments
Tax Payments
Education Fees

For many, these categories represented a substantial portion of their monthly spending, and thus, a good chunk of their cashback earnings. The removal of these benefits is undoubtedly a hit, especially for those who strategically used this card to maximize rewards on everyday essentials. This is where the "devaluation" sentiment really kicks in.

What Remains Unchanged (And Why It Still Matters)

Despite these changes, it's important to remember what the card still offers:

5% cashback on Amazon India for Prime members.
3% cashback on Amazon India for non-Prime members.
2% cashback on payments to Amazon Pay merchant partners.
1% cashback on all other eligible spends.
Lifetime Free: Still no joining or annual fees!

So, if your primary use for the card is shopping directly on Amazon India, paying via Amazon Pay for specific merchants, or as a general 1% cashback card for miscellaneous expenses, its core value proposition for those activities remains strong.

The Verdict: Devaluation or Strategic Shift?

Whether this constitutes a "devaluation" depends heavily on how you use the card.

For heavy Amazon shoppers and international spenders: The card still holds significant value, and the reduced forex fee is a clear upgrade. You might even see increased value.
For those relying on utility, rent, or tax payment cashback: This is a definite step down. You'll need to find an alternative card for these expenses to continue earning rewards.

It seems ICICI Bank and Amazon Pay are refining the card's focus, perhaps nudging it more towards its e-commerce roots and making it more competitive for international transactions.

What Should You Do?

Review Your Spending: Look at your past statements. How much did you spend on utilities, rent, taxes, and education fees using this card?
Evaluate Alternatives: If you're losing significant cashback, explore other credit cards that offer rewards on these specific categories.
Keep it for Amazon: Even with the changes, it remains a top contender for Amazon India purchases, especially for Prime members, and now for international transactions.

The Amazon Pay ICICI Bank Credit Card is still a good card for many, but it's no longer the all-rounder it once was for cashback on essential fixed payments. Adapt your strategy, and you can still make the most of it!