Maybe it's only me, but I've never heard of this method (taken from iKobo's faq):
Q: Why has my credit card been charged twice?
A: This was done as a security precaution. Once you have sent money, iKobo will charge your account with a small random amount. You will have to call your bank or credit card company for the amount charged. Once you have the amount, log in to your account and enter this amount to verify your credit card. This is done as a security measure. Once you verify the information, your account will be credited the verification charge, and your recipient will receive their money instantly.
It surely reduces cc fraud but doesn't it frighten customers and possibly scare them away? It's also rather inconvenient for customers. Or is it only me who doesn't get it?
Funny you mentioned it though, as someone advised me they were having problems with Ikobo recently and we needed to send a payment. Sent it just now anyway, and definitely only one charge went through. Which is good, because we haven't had much success with getting support in the past so I wouldn't like to have been chasing a double charge up.