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RFID FAQs

Is RFID new?
RFID is a proven technology that’s been around since at least the 1970s. Up to now, it’s been too expensive and too limited to be practical for many commercial applications. But if tags can be made cheaply enough, they can solve many of the problems associated with bar codes. Radio waves travel through most non-metallic materials, so they can be embedded in packaging or encased in protective plastic for weatherproofing and greater durability. And tags have microchips that can store a unique serial number for every product manufactured around the world.

If RFID has been around so long and is so great, why aren’t all companies using it?
Many companies have invested in RFID systems to get the advantages they offer. These investments are usually made in closed-loop systems—that is, when a company is tracking goods that never leave its own control. That’s because all existing RFID systems use proprietary technology, which means that if company A puts an RFID tag on a product, it can’t be read by Company B unless they both use the same RFID system from the same vendor. But most companies don’t have closed-loop systems, and many of the benefits of tracking items come from tracking them as they move from one company to another and even one country to another.

Is the lack of standards the only thing that has prevented RFID from being more widely used?
Another problem is cost. RFID readers typically cost $1,000 or more. Companies would need thousands of readers to cover all their factories, warehouses and stores. RFID tags are also fairly expensive – 20 cents or more – which makes them impractical for identifying millions of items that cost only a few dollars.

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