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15 Aug, 2022

Buy Online, Pick Up In-Store: The Post-COVID-19 Reality

Hybrid Shopping

Many merchants have added store pickup options to their websites in response to the pandemic. This hybrid shopping method is part of a larger trend in which smartphones are used to find deals in stores, as consumers now routinely browse store aisles and simultaneously search for price matches and more to boost their weakened buying power.

Studies have shown that over 60% of shoppers read reviews from multiple sources before making a purchase. This indicates that shoppers are increasingly doing research online before making a purchase.

Benefits of In Store Pickup

As Brian McGrory, head of Merchant Sales and Acquiring, Visa AuNZSP, told PYMNTS’ Karen Webster, there are several facets to the trend, which are valuable, in store pickup eliminates the risk and cost of missed deliveries [and] adds the ability to browse in store … increasing the chances for the retailer of encouraging additional purchases when the shoppers are collecting those items.

Another benefit McGrory said was that in store pickup “allows the shopper to nominate their preferred location and time of pickup,” increasing the likelihood of additional buying.

Chargeback Risks

However along with this shift in behavior comes the fact the customer is there in your app, looking at what’s on special, looking at what offers are there, comparing prices, choosing whether they’re going to have it delivered or not, and loading there payment credentials, and paying for it in-app. As with all digital payments once in in app without a physical swipe its categorized as a CNP (Card-not-present) transaction, which means that the merchant is liable in case of fraud.

In addition to the risks of chargebacks, fraud systems need to adapt to these customers and create separate risk tolerance and rules around this subset of users. Having a fraud system that uses AI to learn from purchases assures that the system can always adapt to these new subsets and customer traits.


In conclusion this new shopping model has both pros and cons for retailers. On the one hand, it eliminates the risk and cost of missed deliveries, and increases the chances for the retailer of encouraging additional purchases when the shoppers are collecting their items. On the other hand, it also creates new risks for retailers, such as chargebacks and fraud. AI-based fraud systems can help adapt to these new risks and protect retailers from losses.