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If payment option "Pay in store" is available (or any other) and customer do not make any payment via on-line store (just making payment at local store), then vendor is not able to change payment status.
Source: http://www.nopcommerce.com/boards/t/45434/vendor-admin-panel-information.aspx
But the issue is that partial payments are not supported right now. Should we hide this payment method when products from vendors are used? At least until partial payments are supported. Let's decide whether we should hide it when all products are from one vendor or not, with products without vendors, etc
Especially considering that there could be multiple places (stores)
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