The Dark Side of the Omnichannel Experience

Dec 21, 2015 — Faai Steuer

Ordering online and picking up in-store is one initiative retailers are trying to implement to bridge the gap between online and offline shopping. This service combines the convenience of shopping online with the pleasure of shopping in-store. Consumers can buy products whenever and wherever they want and pick up a product at a convenient time without walking around the store to find a product. They can also see a physical product before they take it home. At the same time, retailers have another opportunity to sell additional products while consumers are visiting the store. 


The dark side of order online, pick up in-store is it becomes a new path to fraud.


The dark side of order online, pick up in-store is it becomes a new path to fraud. According to a recent ACI report, attempted fraud rates for in-store pick up are predicted to increase by 28% this holiday season. One of the reasons for this increase is the shift to EMV by retailers. As in-store credit card payments become more secure, fraudsters are searching for new ways to circumvent this additional level of security. Fraudsters can get away with this activity because retailers often do not require customers to re-process the credit card when they pick up products in-store.

Should this news discourage retailers to offer this service? The simple answer is no and here's why:

Multichannel Consumers Spend More

As we all know, the omnichannel shopper spends more and has a higher lifetime value than those who shop using only one channel. The return of being a destination brand or retailer is huge and should outweigh the risk of fraud.

Verficiation Adds Security

With the proper protocol to prevent fraud, the retailer can mitigate the risk of fraud. Verifying the credit card when the customer comes to the store, and requiring customers to provide ID are great ways of validating the customer and can help in reducing the fraud transaction in store. 

So although retailers need to be aware of the fraud risks associated with order online, pick up in-store, it shouldn't hold you back from offering the service to your customers. 


Topics: Fraud

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