What are RFID Tags? How do RFID Tags Work? Why Choose Rfgenie?
At Rfgenie, we believe RFID (Radio Frequency Identification) technology is transforming the way businesses operate—yet many people are still unaware of how deeply it is integrated into daily processes.
As one of India’s leading manufacturers of RFID tags, RFID labels, RFID hard tags, and NFC tags, we are committed to simplifying this technology and showcasing its value across industries.
For global RFID standards and foundational understanding, refer to the following authoritative bodies:
GS1 EPC/RFID Standards: https://www.gs1.org/standards/epc-rfid
RAIN RFID Alliance Overview: https://rainrfid.org/
RAIN RFID tags are now embedded in countless products and assets to automate inventory workflows, enhance supply chain visibility, and support a wide range of enterprise applications. This technology plays a crucial role in streamlining operations, improving data accuracy and enabling contactless identification without requiring direct touch or line of sight.
In this article, Rfgenie provides a closer look at what RAIN RFID tags are, how they function, their key advantages and limitations. How organisations across sectors are using RAIN RFID to achieve smarter, more efficient operations.
How do RFID Tags Work?
An RFID tag works by transmitting and receiving information via an antenna and a microchip — also sometimes called an integrated circuit or IC. The microchip on an RFID reader is written with whatever information the user wants.
Active (Battery-Operated) Devices
Active units include an internal battery that powers both the microchip and antenna. Because they generate their own signal, these identifiers offer extended read distances and are ideal for continuous visibility, real-time monitoring, and long-range tracking. In many industrial environments, they are simply referred to as active transponders.
Passive Identification Labels
Passive units—widely adopted across retail, logistics, manufacturing, and enterprise workflows—do not contain their own power source. Instead, they draw energy from the electromagnetic field emitted by a reader. This design makes them lightweight, affordable, and suitable for large-volume deployments.
Consequently. These identifiers are available in several frequency bands, each serving different operational requirements:
Low Frequency (LF): 125–134 KHz
Shorter read distances with reliable performance near metallic surfaces or liquids.
High Frequency (HF): 13.56 MHz
Moderate read range and strong data integrity, commonly used for access control, library systems, and authentication.
Near-Field Communication (NFC)
A subset of HF technology designed for close-range, device-to-device interaction, widely used for mobile payments and smart consumer experiences.
Ultra High Frequency (UHF): 865–960 MHz
Offers the longest read ranges and fastest data capture, making it the preferred choice for inventory automation, supply chain visibility, and logistics operations.
How Passive Systems Communicate
When a passive identifier enters a reader’s electromagnetic field, the signal activates the microchip. Once powered, it modulates the incoming energy and sends encoded information back to the reader. The captured data is then processed by backend software for tracking, validation, or analytics.
This ability to function without line-of-sight and perform rapid, contactless communication is what makes radio identification technology exceptionally effective for automation-driven environments.
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RFID Benefits & Limitations
RFID tags are an ideal asset tracking system in certain applications, but has some shortcomings in functionality, durability and security.
What are RFID Tags Used for?
RFID tags used in a wide range of applications, including:
Inventory management: RFID tags can be attached to products or packaging to track their location and movement throughout the supply chain.
Access control: RFID tags can be used as electronic keys to grant access to secure areas or to track employee movements.
Asset tracking with RFID: RFID tags can be used to track valuable assets, such as equipment, vehicles, or tools, to prevent theft or loss.
Animal tracking: RFID tags can be used to track animals for research, wildlife management, or farming purposes.
Payment systems: RFID tags can be used in contactless payment systems, such as transit fare payment cards or electronic toll collection.
Healthcare: RFID tags can be used to track medical equipment, monitor patient vital signs, and ensure proper medication administration.
Overall, RFID technology enables automated data collection and can improve efficiency, accuracy, and security in a variety of industries and applications.
Examples of RFID Tags
Since an active RFID is constantly sending out a signal, it makes an excellent choice for those looking for up-to-the-minute live tracking, such as in tolling and real-time vehicle tracking applications. They are an expensive product, but they do offer a long read range, which may be preferred depending on their application.
Passive RFID tags are a much more economical choice than active RFID tags, and cost around 20 cents each. This makes them a popular choice for supply chain management, race tracking, file management, and access control applications.
While a passive RFID tag does not require a direct line of sight to the RFID reader, it has a much shorter read range than an active RFID tag. They are small in size, lightweight, and can potentially last a lifetime.
Since active RFID tags feature a larger, more rugged design than passive RFID tags, they are better suited for applications where durability is required. They are frequently used in toll payment transponder systems, cargo tracking applications, and even in devices used to track people.
Advantages of Using RFID Tags
Key benefits include:
- Increased Operational Efficiency – RFID enables rapid scanning of thousands of items, reducing cycle times.
- Improved Data Accuracy – Tags do not require line-of-sight, reducing human error and improving batch scanning.
- Reduced Labour Costs – Automation eliminates the need for manual scanning and manual data entry.
- Enhanced Supply Chain Security – Encrypted RFID tags help prevent counterfeiting and unauthorized product movement.
- Real-Time Tracking – Visibility across movement, condition, and location enhances decision-making.
- High Durability – RFID tags are more resilient than barcodes, which are prone to damage and misreads.
Frequently Asked Questions
What is a RFID tag used for?
Therefore RFID tags are used for a variety of applications, including inventory management, tool tracking, asset tracking, equipment tracking, and more. Generally, they’re used to monitor an asset’s location or condition as it moves throughout an organization or the supply chain.
Can RFID tags be tracked?
Yes, RFID tags can be tracked. Active RFID tags can be tracked automatically, and passive RFID tags can be tracked manually.
Can RFID tags be hacked?
Yes, RFID tags can be hacked. They can be sensitive to radio interference, which can disrupt performance and readability.
Some RFID tags are rewriteable, and hackers can delete or replace the data. Sensitive data can also be intercepted by hackers if the data isn’t encrypted during transmission.
Can RFID tags be hacked?
Yes, RFID tags can be hacked. They can be sensitive to radio interference, which can disrupt performance and readability.
Some RFID tags are rewriteable, and hackers can delete or replace the data. Sensitive data can also be intercepted by hackers if the data isn’t encrypted during transmission.
Can RFID tags track location?
Yes, RFID tags can track location, but to what extent depends on the type of RFID tag. Active RFID tags are battery-powered and can be detected within 300 feet of an RFID reader.
With some active tags, triangulation enables location tracking with +/- 10 foot accuracy. Passive tags, which rely on the radio signal transmitted by the RFID reader, which typically must be within about three to 16 feet of the RFID tags.
Where are RFID tags used?
Due to their limited scanning range, passive RFID tags are often used in applications such as inventory management within a warehouse or facility, as RFID readers can be placed in strategic locations for inventory monitoring.
Other use cases include access control, livestock tracking, ticketing, payment, and data transfer applications, and distribution and logistics operations, among others.
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