A microchip attached to an antenna that is packaged in a way that it can be applied to an object.

The tag picks up signals from and sends signals to a reader. The tag contains a unique serial number, but may have other information; such as, a customers' account number.

Tags come in many forms, such smart labels that can have a barcode printed on it, or the tag can simply be mounted inside a carton or embedded in plastic. RFID tags can be active, passive or semi-passive.