Radio Frequency Identification (RFID)

Radio Frequency IDentification (RFID) is a system used to track objects, people, or animals using tags that respond to radio waves. RFID tags are integrated circuits that include a small antenna. The are typically small enough that they are not easily noticeable and therefore can be placed on many types of objects. This technology is most often used in the credit card industry, with RFID chips embedded in credit cards for secure transactions. RFID is similar to Near Field Communication (NFC), which is used to link devices together to send data back and forth such as photos or videos; allowing for a full two-way communication. RFID is different in the way that it is only “read only”, which means that that information sent from your credit card to the card reader is a one-way communication, the reader cannot communicate back to the credit card, it can only read what the card sent it.

Source: TechTerms

Additional Reading: RFID: How The Digitization of Retail is Progressing

Related Terms: Near Field Communication (NFC)

How can RFID be used by an SMB?

For larger businesses RFID technology can be used to track all of their products and keep track of hard copies of important information, but that becomes costly for the smaller and mid-size business. SMBs who have an in-person checkout process can employ a card reader that accepts RFID embedded credit cards. In regards to cybersecurity, many companies use RFID thermometers that are installed in their server rooms to monitor the temperature of the room to ensure the cooling system is properly working and nothing is overheating. Many smaller and mid-size businesses may lack physical security getting into their office space, where anyone can walk into the office off the street. Many companies use RFID enabled badges and door locks to control access into their buildings.

To learn more about RFID, watch this short 4 minute video:

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