The basic types of RFID tags can be classified as read/write and read only. The data stored on read/write tags can be edited, added to, or completely rewritten, but only if the tag is within the range of the reader. The data stored on a read only tag can be read, but cannot be edited in any way. Read/write tags are much more expensive than read only tags, so they are not used for tracking most commodity items.

Although there are hundreds of uses for RFID tags, one of the most common uses is for theft control. The tag 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 tag is purchased, the tag is deactivated at the checkout station so that the alarm is not triggered when the customer passes through exit with the product. RFID tags are often incorporated with digitally printed applications such as smart labels and security cards.