Hi,
Well, what happens depends on many things. Like, what payment plugin is used and how it is configured, or how HikaShop itself is configured.
For example, some payment plugins will request the credit card information during the checkout process and will process the payment when the order is being created, when the user clicks on "finish". So if the payment fails, the order is not created and the user goes back to the checkout with an error message, and he can retry, and no order is cancelled, since no order has been created.
Also, in the HikaShop configuration, you have the "clear cart when order is" setting. If this setting is set to "created", then the cart will be cleared when the user clicks on the "finish" button, before being redirected to the payment gateway by the payment plugin (which is usually what happens). In that case, if the payment fails on the payment gateway, and the payment gateway doesn't allow the customer to retry, the order will be cancelled, but the customer can't be brought back to the checkout since the cart has already been cleared. In that case, you rather want to set this setting to "confirmed" so that the cart is only cleared after the user comes back from the payment gateway and the payment is successful. That way, if the payment fails, the order will be cancelled, and the user will go back to the checkout, and he will be able to click on "finish" again to create a new order and try again.