The verified icon indicates that the identity of a seller has been confirmed, by the seller paying a fee of $5.00. Ebay believes that this gives the buyer an extra measure of security and adds money to the confers of Ebay.
To Id verify a seller must go through a third party (Equifax in the U.S.) company that works closely with Ebay to cross-check the seller'seller's contact information across consumer and business databases.
To learn more about this go to this page:
When you show proof of your true (?) identity you do not need to put your credit card on file.