I've had a failed MQ. It sucks, but it is the nature of using an exploit. There is some risk involved. GMs aren't going to help you. Basically it happens when someone before you did the quest wrong.
As far as faction, make sure that the MQer hails the turn in mob. This will allow you to verify his/her faction. If they do not get the correct reply, no dice. Most people don't get this part wrong though (at least on the selling side).
Whenever this happens, however, no payment transaction should occur, since the service requested was not supplied.
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have a nice day
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