Is it permissible to use a credit card from an Islamic bank that allows purchases in installments with a Murabaha profit that increases with the length of the installment period (1 month 0%, 3 months 2%, 6 months 4%), knowing that cash withdrawals are not subject to Murabaha but incur a fixed fee?

The amounts withdrawn from an uncovered credit card, whether from an ATM or for purchasing goods, are considered a loan from the bank to the cardholder. Any interest imposed on these amounts—other than actual service fees—is considered usury (riba). Purchasing goods with this card and settling the price through it makes the bank a lender to you, and it is not permissible for it to take profit from you in return, because it did not purchase the goods to sell them to you; rather, it paid the price on your behalf.

If "Murabaha" in installments (such as 2% for three months and 4% for six months) is intended to mean adding interest to the price of goods if the amount is not paid within a month, then this is usury and is not permissible.

The Council of the Islamic Fiqh Academy has decided: 1. It is not permissible to issue an uncovered credit card or deal with it if it stipulates an usurious increase, even if the holder intends to repay within the grace period. 2. It is permissible to issue an uncovered credit card if it does not include usurious conditions on the principal debt. Its issuer may take a fixed fee upon issuance or renewal as a service charge. Likewise, the bank may take a commission from the merchant on the customer's purchases, provided that the merchant sells with the card at the same price as selling for cash.