Magento 2 – Automatically Cancel Pending Orders After Specified Time

I would not delete the order but just cancel them and with a cronjob (either a script or Magento extension) you can do this. Run it daily to clean up the orders. Results are logged to var/logs/cancelorders.log for reference.

$collection = Mage::getModel('sales/order')->getCollection()
    ->addFieldToFilter('updated_at', Mage::getModel('core/date')->gmtDate(null, time()-86400)) // only clean yesterdays orders so user has time to restart transaction
    ->addFieldToFilter('state', 'pending_payment');

foreach ($collection as $order)
{
   $order->cancel();
   $order->setStatus('canceled');
   try {
      $order->save();
      Mage::log("Canceled {$order->getIncrementId()}", Zend_Log::INFO, 'cancelorders.log', true);
   } catch(Exception $e){
      Mage::log("Could not cancel order {$order->getIncrementId()}: {$e}", Zend_Log::WARN, 'cancelorders.log', true);
   }
}

I can give you an example how to add additional status to existed payment method.

Magento by default in system / configuration has such as 'New Order Status'.

Let's look at SavedCC:

Now we change system.xml file.

Original:

                    <order_status translate="label">
                        <label>New Order Status</label>
                        <frontend_type>select</frontend_type>
                        <source_model>adminhtml/system_config_source_order_status_new</source_model>
                        <sort_order>2</sort_order>
                        <show_in_default>1</show_in_default>
                        <show_in_website>1</show_in_website>
                        <show_in_store>0</show_in_store>
                    </order_status>

You need to replace

<source_model>adminhtml/system_config_source_order_status_new</source_model>

with:

<source_model>adminhtml/system_config_source_order_status_newprocessing</source_model>

And you will get: