Radio Frequency Identification (RFID) is a data collection technology that uses electronic tags to store identification data and a no line-of-sight requirement reader to capture it.

RFID tags and readers communicate with each other through radio waves. A tag is a chip with an antenna. Tags are active (battery powered) or passive (uses the strength of the reader signal to be activated). Information on the tag is reprogrammable in certain types.

The tag level in Microsoft Dynamics AX is item, case, or pallet.