Resentment over Apple Pay continues to mount more pressure on Apple Inc. (NASDAQ:AAPL) and this time around the heat is coming from small businesses who are refusing to accept the service. CNBC’S Kate Rogers reports that most of the small businesses are refusing to accept the new service arguing they don’t understand how it operates or out of fear of incurring more costs in machine upgrades.

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“It is not just those big retailers like CVS Health Corp (NYSE:CVS) and Rite Aid Corporation (NYSE:RAD) that are saying no thanks to Apple Pay. A new report finds that small businesses aren’t into the service either,” said Mrs. Rogers.

A survey carried out on 1,000 small businesses found out that 93% of them were not considering making the switch to Apple Inc. (NASDAQ:AAPL)’s new mobile payment system, as well as Google Inc. (NASDAQ:GOOG) Pay. Rejection of the new service mostly has to do with the fact that most of the businesses have not installed POS terminals.

Rogers believes time is ticking for the retailers to make the switch and may face the full force of the law in case they get hacked in 2015.

“Timing is everything small retailers may have to upgrade anyway, in 2015 to accept credit cards with chips and if they don’t. The burden of responsibility for fraudulent charges will shift from credit card companies Visa Inc. (NYSE:V) and MasterCard Inc. (NYSE:MA) to the retailers who doesn’t enable chip transactions,” said Mrs. Rogers

Target Corporation (NYSE:TGT) is in line to incur up to $148 million in costs this year related to its data breach last year with Home Depot expected to pay even more. Small business may be forced to upgrade their systems as one of the ways of protecting themselves from incurring future fines on data breaches.

Apple Inc. (NASDAQ:AAPL)’s new system is safer than most of the systems in the market as at no point does it collect customer’s personal data, which may be lost in case of hackings. The only downside to the service is that retailers will lose the ability to track shoppers the traditional way.

Carl Icahn‘s Icahn Capital Lp upped its stake by 600% in the second quarter of 2014 to 52.76 million shares of Apple Inc. (NASDAQ:AAPL).

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