I'm also seeing this issue with any card I test with, on any account I test 
with, and on any device I test with.

http://stackoverflow.com/questions/9164013/in-app-billing-fails-with-took-too-long-to-deliver

Quoted from SO:

I am in the process of integrating In-App Billing in my application for 
unmanaged products. I've configured my application in the market already to 
implement the BILLING permission. I've published the product ids as 
expected by my in-development version of my application. I've used test 
products so far, but for quality assurance have been trying to test with 
real products, charging to an AMEX card as well as personal VISA/Mastercard 
cards.

When I have a transaction go through, everything in my application works 
without a hitch. I'm even confirming all of the notification ids, so no 
problems there.

Throughout the process though, I have run into an issue where there is an 
inability to purchase the products.

The Market application responds to the user with a dialog with text

"Purchase canceled
Your payment could not be processed. Sign in to your Google Wallet account to 
request support."

This issue is seen on 2 Galaxy Nexus 4G devices as well as an HTC Sensation 
4G. The issue occurs on WiFi, 3G, and 4G networks. The accounts purchasing 
initially receive an "Order receipt" email, followed by an "Order 
cancellation" email. The order receipt email properly includes the full 
information for the transaction including product name, cost, order number, 
date, etc. The order cancellation also includes all of this information and 
describes the reason for cancellation as, "Took too long to deliver". The 
application gets a broadcast of a purchase state change at this time, which 
is the cancelation of the transaction.

Any insight into what's happening and why I'm having all of my transactions 
fail to complete?

It's rare that a transaction completes properly in testing.

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