What changed
AU Small Finance Bank and Zaggle Prepaid Ocean Services announced the AU Zaggle Co-Branded Retail Credit Card in a joint statement on 9–10 July 2026. It is genuinely lifetime free: AU's Key Fact Statement (v1.8, 7 July 2026) lists "AU Zaggle" under both joining fee and annual membership fee as "Lifetime Free", with no spend condition attached. It is issued on Visa or RuPay, and AU's FAQ confirms you may hold only one variant.
Published rates, from AU's product page and Zaggle's rate card:
| Spend | Advertised rate |
|---|---|
| zagg.money UPI and Tap & Pay | Up to 8% Zagg Coins |
| E-commerce | Up to 4% Zagg Coins |
| Other spends | 2% Zagg Coins |
| Fuel | 1% surcharge refunded, ₹400–₹5,000 txns, max ₹100/statement month |
Zaggle adds that earnings "vary basis customer holding and transacting using RuPay and/or VISA card".
Who is affected
New applicants only, through the zagg.money app. AU's Altura and Altura Plus, at ₹199 and ₹499 a year, are separate and untouched. We do not list the AU Zaggle card yet.
What to do
Those percentages are coin counts, not rupee returns. Zaggle's FAQ says "4 Zagg Coins equal ₹1" and "every ₹100 you spend with your Zagg Card on the Zagg UPI app gets you 3 Zagg Coins" — against an advertised 3%. That 3% pays ₹0.75 per ₹100: 0.75%. At ₹0.25 a coin, the AU card's headline 8% is worth about 2%, and the 4% e-commerce rate about 1%. Route ₹15,000 a month through the app at 8% and you earn 1,200 coins — ₹300 a month, ₹3,600 a year — on a card that costs nothing to hold (methodology).
The caps are not published. AU's KFS, its MITC (V-2.21) and its full documents hub carry no coin cap, coin value or minimum transaction for this card, and Zaggle's documents page points back only to those AU PDFs. Zaggle's rewards policy is scoped explicitly to the Zagg Yes Bank card, where the cycle cap is 1.5% of the credit limit and only transactions of ₹50 or above earn. Whether either applies here is undisclosed — ask AU in writing before applying.
Two more traps: third-party UPI apps earn nothing ("if you use a different UPI app, you won't earn Zagg Coins"), and the four value passes — Utility, Earn More, Everyday, Movie — are paid, under Zaggle's heading "Small fee unlocks big features". The KFS prices forex at 3.49%, revolving interest at 3.75% a month (45% a year) and cash advances at 2.5% or ₹500, whichever is higher. For anything paying in its own currency, the coin-to-rupee ratio decides it, not the percentage.
Sources
- AU Small Finance Bank — AU Zaggle Credit Card (official product page)
- AU Small Finance Bank — credit card Key Fact Statement / Schedule of Charges (v1.8, 7 July 2026)
- AU Small Finance Bank — Most Important Terms & Conditions, credit cards (V-2.21, 7 July 2026)
- AU Small Finance Bank — credit card documents hub (full PDF inventory)
- Zaggle — AU Zaggle Credit Card rate card (zagg.money)
- Zaggle — Zagg rewards policy (scoped to the Zagg Yes Bank card)
- Zaggle — Zagg Money FAQs (coin value and earning rules)
- The Hindu BusinessLine — AU Small Finance Bank and Zaggle launch co-branded retail credit card with flexible rewards (9 July 2026)