Apni Law Staff asked 6 months ago
My friend, who lives in the US, is being asked to share his company’s payment processing system with an Indian tech support company. This company needs to charge their American clients through credit cards, but since they don’t have a US Social Security number, they can’t set up their own payment gateway. They’re asking my friend to let them use his, promising he won’t have to interact with their clients.
Is this legal? Could my friend be held responsible if the Indian company misuses his system or if their American clients have issues? If so, is there a way to protect him through a contract that clearly states he’s only handling payments?
Best Answer
Apni Law Staff answered 6 months ago
This arrangement is likely illegal under Indian laws, as it would violate payment processing regulations and potentially expose your friend to legal and financial risks. He could be held liable for any misuse of his system by the Indian company and any issues faced by their clients. While a contract could define the scope of his role, it wouldn’t necessarily absolve him from liability if the Indian company violates regulations.
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