Every RFID system consists of three components: a scanning antenna, a transceiver and a transponder. When the scanning antenna and transceiver are combined, they are referred to as an RFID reader or interrogator. There are two types of RFID readers -- fixed readers and mobile readers. The RFID reader is a network-connected device that can be portable or permanently attached. It uses radio waves to transmit signals that activate the tag. Once activated, the tag sends a wave back to the antenna, where it is translated into data.

The transponder is in the RFID tag itself. The read range for RFID tags varies based on factors including the type of tag, type of reader, RFID frequency and interference in the surrounding environment or from other RFID tags and readers. Tags that have a stronger power source also have a longer read range.