This is what Google emailed me:
"Your credit card payment failed but don't worry, we're holding a device back for you. All we need is for you to update your payment method or, if you'd prefer, cancel the order. If you choose to update your payment method, you can do so by signing into your Wallet account at wallet.google.com"
As soon as I received this email, I immediately made a purchase via Google Wallet. The purchase passed through successfully and pending charge appeared on my CC account instantly. Evidently, ?Your credit card payment failed? is not true and no CC charge attempt was ever made.
?if you'd prefer, cancel the order? is more like suggesting to cancel the order?