RFID systems have notably gained popularity in the recent years. The reason for its sudden increase in popularity is the rise in online commerce. Pervasive commerce uses technologies such as tracking devices and smart labels embedded with transmitting sensors and intelligent readers to convey information about where consumers might live and work to data processing systems.

To gather this data, retailers can choose from a range of options.

A basic RFID system consists of three components:

Antenna or coil – Emits radio signals to activate the tag and to read and write data to it.

Transceiver with decoder – Emits radio waves in ranges between 1 inch to 100 feet depending upon its power output and radio frequency used. When an RFID tag passes through the electromagnetic zone, it detects the reader’s activation signal.

Transponder (RF tag) electronically programmed with unique information – The reader decodes the data encoded in the tag’s integrated circuit and the data is passed to the host computer for processing.

The purpose of an RFID system is to enable data to be transmitted by a portable device, known as a tag which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged, such as price, color, purchase date etc.

RFID quickly gained attention because of its ability to track moving objects. As the technology is refined, more pervasive – and invasive uses for RFID tags are in progress.

RFID systems may be roughly grouped into four categories:

EAS (Electronic Article Surveillance) systems: Generally used in retail stores to sense the presence or absence of an item. Products are tagged and a large antenna reader is placed at each exit of the store to detect unauthorized removal of the item.

Portable Data Capture systems: Characterized by the use of portable RFID readers, which enable to be used in variable settings.

Networked Systems: Characterized by fixed position readers which are connected directly to a centralized information management system, while transponders are positioned on people or moveable items.

Positioning Systems: Used for automated location identification of tagged items or vehicles.

These RFID systems enable business owners to have real-time access to inventory information, as well a broader, clearer picture of consumers buying habits. This composite information is vastly superior and more invasive than any data that could be obtained from scanning bar codes or smart cards.