My bank requires a security dongle. Place the debit card in the card reader and enter a pin code.
An 11 digit code appears which is entered on the bank's website and access is granted.
But if I want to set up a payment they ask for all the details and then produce an 8 digit number, which includes data of the recipient. I then have to put my card back into the reader, enter my pin and then this 8 digit code.
The reader then produces a new code which has to be entered into the bank. If that is correct the action is authorised. If the reader is not communicating with the banks website how does it know how to produce the code?