I setup a bank account in Germany in 2007 that issued me a hardware token generator (I forget the name of the bank). It was my first experience with 2 factor auth, and I'm a little surprised that I have yet to see it implemented with banks in the US.
Today, these usually work by transmitting some code via a flickering field on the website. You insert your bank card into the generator, hold it to your screen and type the number it shows on the device.
