An RFID reader consists of an antenna used to transmit radio signals and receive responses from RFID tags, a transceiver that controls the antenna and handles communication via radio waves, and a controller that processes and transfers the data between the RFID tag and host computer system. The reader antenna emits radio waves to power the tag and read and write data to it, while the tag antenna receives the signal and sends back responses containing identification and other data that the reader passes to the host system.