Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to

objects. An RFID tag consists of a tiny radio transponder; a radio receiver and transmitter. When triggered by an electromagnetic interrogation pulse from a nearby RFID reader device, the tag transmits digital data, usually an identifying inventory number, back to the reader. This number can be used to inventory goods. There are two types. Passive tags are powered by energy from the RFID reader's interrogating radio waves. Active tags are powered by a battery and thus can be read at a greater range from the RFID reader; up to hundreds of meters. Unlike a barcode, the tag doesn't need to be within the line of sight of the reader, so it may be embedded in the tracked object. RFID is one method of automatic identification and data capture (AIDC).

 

Reference:

http://www.mhi.org/fundamentals/automatic-identification (Automatic Identification and Data Collection (AIDC) Archived May 5, 2016, at the Wayback Machine)