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I don't do in store pickups anymore because of this! I had something similar happen at Circuit City. I feel for you, and I don't think it's right that they "hold" your money for a product you didn't receive. To me, it's seems that they should be able to credit your card back for the "online" puchase, and then swithc it over to a "instore" purchase. Sorry this happened to you.
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