Radio-frequency identification (RFID) is the use of radio frequencies to transfer data. The radio frequencies are then used to automatically identify people or objects. There is more than one way to do so, but the most widely used method is to store a person or object’s serial number on a microchip. The microchip is attached to an antenna – known as RFID transponder or an RFID tag – and the antenna enables the chip to transmit information to a reader. The reader reads the radio waves and sends them to a computer. Unlike bar codes, the RFID tags do not have to be in line of sight with the reader.
RFID is not necessarily better than bar codes, however. Although their uses sometimes overlap, they are two different technologies. The biggest difference, as we mentioned, is the line-of-sight factor – a scanner has to see a bar code to read it, which involves people physically locating inventory and scanning it. Radio frequency identification, by contrast, doesn’t require line-of-sight. As long as a reader is in range – and readers have extremely long ranges – RFID tags can be read.