At its core, an NFC card reader uses **radio frequency identification (RFID)** technology to communicate with an NFC Card Readers tag or card. When an NFC-enabled card or smartphone is brought near the reader, the two devices establish a connection using electromagnetic induction. This connection allows small amounts of data to be transmitted quickly and securely. The process is often completed in a fraction of a second, making it ideal for fast transactions such as tap-to-pay systems in retail stores or public transportation.
There are **two main types of NFC readers**: **passive** and **active**. Passive readers simply read information from an NFC tag or card without generating their own radio waves, while active readers can both read and write data to the card or device. In payment systems, for example, active NFC readers are used at point-of-sale terminals to read payment information from a credit card or smartphone wallet app such as Apple Pay, Google Pay, or Samsung Pay.
One of the major advantages of NFC card readers is **security**. The short communication range reduces the risk of interception, and most NFC systems use encryption and tokenization to protect sensitive information.