What is RFID?
Radio Frequency Identification (RFID) is a technology that uses radio frequency waves to transfer data between a reader and a tag attached to an object, for the purpose of identification and tracking.
There are two main types of RFID systems:
Active RFID systems: In these systems, the tags have their own power source (like a battery). This allows them to broadcast a signal, and they can be read from a much greater distance – often hundreds of meters.
Passive RFID systems: In these systems, the tags do not have their own power source. Instead, they receive power from the reader when it sends out a radio wave that induces a current in the tag's antenna. Because they rely on the reader for power, they have a much shorter read range, typically a few meters.
RFID technology is used in a variety of applications, including inventory management, asset tracking, personnel tracking, controlling access to restricted areas, ID badging, and supply chain management. It is an alternative to barcode technology, with the advantage that RFID tags can be read without line-of-sight and can be read simultaneously in large quantities.
How does RFID work in a wallet?
RFID technology can be utilized in wallets for a couple of different purposes.
RFID-Enabled Cards: Many modern credit cards, passports, and identification cards come with RFID chips that can transmit information wirelessly. This makes transactions quicker (such as contactless payments) but also potentially makes your information more vulnerable to unauthorized RFID readers.
RFID-Blocking Wallets: Due to the potential security vulnerabilities, many wallets are now made with RFID-blocking materials. These materials prevent RFID readers from accessing the information on your cards. When you put your RFID-enabled cards into an RFID-blocking wallet, the wallet acts as a shield that prevents unauthorized readers from picking up the signals from your cards.
So, in the first case, an RFID chip in a wallet might be actively transmitting information to make transactions easier. In the second case, the wallet might be passively protecting your information by blocking unwanted RFID signals.