RFID: How Do Gift Cards Technically Work?

2025-05-02Cykeo News RFID FAQ 5410

RFID gift cards use embedded radio-frequency identification (RFID) chips to store and transmit payment or balance data wirelessly. Unlike magnetic stripe cards, RFID cards enable contactless transactions, enhanced security, and durability. Here’s a detailed breakdown of their technology and applications.

1. RFID Gift Card Components

RFID Tags Chip:
- A microchip stores the card’s unique ID, balance, and transaction history.
- Operates at 13.56 MHz (HF RFID) for short-range communication (0–10 cm).
Antenna:
- Coiled wire transmits data between the chip and RFID reader.
Card Body:
- Made of PVC or biodegradable materials, embedding the chip and antenna.

2. How RFID Gift Cards Work

Activation:
- At purchase, the card is linked to a monetary value in the retailer’s database.
Transaction Process:
- Tap to Pay: The card is held near an USB RFID reader, which powers the chip via radio waves.
- Data Exchange: The chip sends encrypted data (e.g., balance, card ID) to the reader.
- Authorization: The payment system deducts the amount and updates the card’s balance.
Reloading:
- Funds can be added via in-store kiosks or online platforms linked to the card’s ID.

3. Security Features

Encryption:
- AES-128 or DESFire encryption protects data during transmission.
Dynamic Authentication:
- Each transaction generates a unique cryptographic key to prevent cloning.
Tamper Resistance:
- Chips are physically shielded to block signal interception or skimming.

4. Advantages Over Magnetic Stripe Cards

Feature	RFID Gift Cards	Magnetic Stripe Cards
Durability	No wear from swiping	Prone to demagnetization
Speed	0.5-second transactions	2–3 seconds per swipe
Security	Encrypted, anti-skimming	Static data vulnerable to theft

5. Cykeo’s RFID Card Innovations

Cykeo’s SecurePay RFID Cards use dynamic CVV codes and tokenization to safeguard retail gift card systems.
Their EcoCard Series offers biodegradable RFID cards for eco-conscious brands.

6. Case Study: 60% Faster Checkouts

A retail chain reduced average checkout times by 60% after switching to Cykeo’s RFID gift cards, processing 500+ daily transactions with 99.9% accuracy.

rfid readers and rfid tags

CK-BQY7020 Anti-Liquid Passive RFID Tags

CK-BQ1504 Anti-Metal RFID Tags

CK-BQ7020 On-Metal RFID Tags

CK-BQ6025 Flexible Anti-Metal RFID Tag

CK-BQ7015 RFID Laundry Tag

CK-BQ12507 UHF RFID Book Tag

CK-BQ5530 RFID Tags in Hospitals

CK-BQ8828 UHF RFID Cable Tie Tag

CK-BQ7320 UHF RFID Asset Tag

CK-BQ8554UHF UHF RFID Card

CK-BQ8554HF HF RFID Cards

CK-BQ6826 Jewelry UHF RFID Tag

CK-R10 Portable iPhone RFID Reader

CK-B4L Mobile Android RFID Reader

CK-B5L RFID Chip Reader iPhone

CK-RA4L 4dBi Long Range RFID Reader

CK-RA6L 6dBi UHF RFID Long Range Reader

CK-RA9L 9dBi Long Range RFID Tag Reader

CK-RA12L 12dBi Long Range RFID Reader

CK-B9 UHF Bluetooth Handheld RFID Scanner

CK-B4 Professional UHF Handheld RFID Reader

CK-B2L UHF RFID Handheld Terminal

CK-B3 Pro Rugged RFID Reader Handheld

CK-B3L UHF RFID Handheld Reader

Industrial Forklift RFID Reader

CK-R4 4-Port UHF RFID Fixed Reader

CK-R4L 4-Port Fixed UHF RFID Reader

CK-R8L 8-Port Fixed RFID Reader

CK-R16L 16-port UHF RFID Fixed Reader

PgUp: RFID Scanner Design: A Visual Guide to Form and FunctionPgDn: What are the key differences between QR codes, NFC, Bluetooth, and RFID? How does NFC work?

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Cykeo Solution

​​1. RFID Gift Card Components​​

​​2. How RFID Gift Cards Work​​

​​3. Security Features​​

​​4. Advantages Over Magnetic Stripe Cards​​

​​5. Cykeo’s RFID Card Innovations​​

​​6. Case Study: 60% Faster Checkouts​​