I just got a notice last night (10/29) that an order placed a week ago (10/22) was canceled by Google Checkout because the credit card company declined the order. I'm not sure why it took a week to cancel the order, or to notify me, because I thought declined credit card orders processed immediately! The item was marked Paid with the green $ sign in MSW, so I shipped. In this case, it worked out because the buyer had immediately re-ordered; that second transaction, so far, seems to have worked and it was processed.
The lesson learned is to check Google Checkout directly for each transaction, and not rely on getting a notification that the payment was declined, or that it will show up any differently in MSW.
