An RFID tag consists of a microchip attached to an antenna. RFID tags are developed using a frequency according to the needs of the system including read range and the environment in which the tag will be read. Tags are either active (integrating a battery) or passive (having no battery). Passive tags derive the power to operate from the field generated by the reader.

An RFID reader, usually connected to a Personal Computer, serves the same purpose as a barcode scanner. It can also be battery-powered to allow mobile transactions with RFID tags. The RFID reader handles the communication between the Information System and the RFID tag.

An RFID antenna connected to the RFID reader can be of various sizes and structures, depending on the communication distance required for a given system's performance. The antenna activates the RFID tag and transfers data by emitting wireless pulses.