Hi...so now that I've googled this issue and searched this forum, I see that "Awaiting Payment" has been a problem for several years, and in the face of criticism, Airbnb has chosen not to do anything to resolve this issue.
Last night I received my first "Awaiting Payment" reservation. It was a reservation for the next day, so the 24 hour waiting period means I'd have lost the ability to rent the hosue for that night.
But more than that, a failed payment is a red flag to me, and if Airbnb would provide me the option to cancel the reservation, I would have done so. But no option is given.
In this case, the guest did eventually confirm payment. But my sense of a "red flag" turned out to be right. They were the worst guests I've hosted so far. They lied about their number of people (9 not 6), they left the house extremely dirty, they partied loudly till late, disturbing the neighbors, they ruined a bedspread, and then they refused to leave at checkout time until I informed them there would be additional charges.
Here's what I'd propose for Airbnb:
1) When a payment is declined, place the reservation on a "hold" status and inform the Host immediately (your system can be easily programmed to do this).
2) Allow the HOST to make a decision at that point, and allow the host to cancel the reservation.
3) If the guest is serious, they can always find a new payment method and rebook the listing if it is still available.
If I call to reserve an airline ticket, and my payment method is declined, the airlines doesn't hold the ticket for me for 24 hours. I have to find a new payment method immediately or call back when I've solved the issue. This is overwhelmingly the standard in the business world. Evidence of problems with payment falls to the guest to solve, not the host.
I was lucky this time, It was only one night, and so I didn't lose out on the potential to book multiple nights. But the possibilty of this is disappointing. I love the Airbnb system, and this is my first real complaint.
Thanks.