Can I switch my user's payment provider without their consent?

Question

My company uses a payout provider that pays out money to our users. However we have decided to switch to a different payout provider and we are wondering how to inform our users. During this migration we will give the new provider each of our users bank account information.

Which of the following scenarios is suitable:

1. We switch the user's provider by giving the new payment provider each of our user's bank details. In this case we will inform each user that we have changed their payment provider via an email. They would have no choice in this matter, they will simply be informed of the change.

2. We send an email notifying each user that if they do not contact us in X amount of time, we will automatically switch them to a different payout provider. Example:

   If you don’t respond to this email, you will be automatically transferred to a new payment provider.

Answer 1

The user would be paying for whatever service you provide. Switching payment processors would be akin to saying that the local restaurant switched credit card machines and your card gets ran through a different company now. It doesn't affect that you are paying for the food and the restaurant is not required to tell you it switched payment processors.

You can email them to tell them that you are switching processors, but you can also just switch as far as the legal side of it. Telling them is good people skills and a nice thing to do though.

Good luck.