Is it permissible to issue and use a prepaid credit card from an Islamic bank if it allows purchases of small uncharged amounts to be deducted later, adds an additional margin to the exchange rate for international transactions, and imposes fees for cash withdrawals from ATMs?

It is permissible to use a prepaid card and pay fees for its issuance or for withdrawals, even if these fees exceed the actual cost. This is because it is not an interest-based loan (riba), but rather charges for services.

The additional amount available from the bank for purchases (5 Riyals) is considered a loan, and it is forbidden to take any increase on it. However, this does not affect the permissibility of using the card because it is a small, unintended loan. The customer must refrain from using this service if the bank stipulates interest on it.

As for what the bank charges for currency conversion, it is the price for selling the currency, and it is permissible if the conditions for currency exchange (sarf) are met. Regarding the additional commission for international transactions: if it is for the benefit of the central bank, then there is no harm in it and no objection to its delayed deduction from the account. However, if it is for the benefit of the bank itself, it is part of the exchange process, and delaying its deduction is forbidden to avoid riba al-nasi’ah (interest due to delay).