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Originally Posted by CyberClaire
im trying to figure how visa verifies the code the card has produced ? does the card produce random digits or pre-stored digits ( if pre-stored..it makes it vunerable to be cracked !???).....looks neat but im totally lost on this concept. 
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Not sure if its like the dutch internet bank accounts, but those interact the produced codes with that from the bank through a callback algo. Then it verifies the code with another code the bank sends. If they match it will go through.