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A tiny microchip connected to an antenna, used to provide rapid identification of goods, inventory management, and/or numerous security features. The RFID (Radio Frequency Identification) transponder, also known as an RFID tag, can be mounted to a variety of items, such as a pallet of goods in a warehouse. A device called a reader communicates with the tag via radio waves, relaying information such as an identification number or a price. The basic types of RFID transponders can be classified as read/write and read only. The data stored on read/write transponders can be edited, added to, or completely rewritten, but only if the transponder is within the range of the reader. The data stored on a read only transponder can be read, but cannot be edited in any way. Read/write transponders are much more expensive than read only transponders, so they are not used for tracking most commodity items. Although there are hundreds of uses for RFID transponders, one of the most common uses is for theft control. The transponder is attached to, or inserted into products as a security device that activates an alarm near the exit of a retail establishment if an attempt is made to remove the product without purchasing it. When a product containing a transponder is purchased, the transponder is deactivated at the checkout station so that the alarm is not triggered when the customer passes through exit with the product. RFID transponders are often incorporated with digitally printed applications such as smart labels and security cards.
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