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RFID was a hot topic on the chat during the live podcast...I've dealt with the technology quite a bit and have been studying how the MagicBands will appear to work...and since I'm a tech nutcase...and for the benefit of those who didn't watch/listen:
There are two basic types of RFID - active and passive. Passive is the more common one, and the one described by Mike. Active actually involves a battery powered transmitter in the tag - a lot of toll systems use an active transmitter that needs to be replaced every couple years because of the battery. SunPass somewhat recently introduced a passive tag system to eliminate the need for replacement - plus the passive tags are a fraction of the cost.
I'll skip further discussion of active RFID for now, but I will mention it once more.
Passive RFID systems work through a combination of magnetic fields and radio signals. A passive tag generally has no battery or other power source at all - yet it contains a radio transmitter, which requires power to work. When passing a conductive metal through a magnetic field, it generates a current - so if you pass a passive RFID chip through a magnetic field, a charge is induced that is enough to power the chip and send a signal. The strength of that signal (which affects range) depends on the strength of the magnetic field and the antenna (which really serves two purposes - to act as the transmitting antenna, but also to convert the magnetic field into the current for power. The "longer" the antenna is (it can be coiled, or go around back in forth in circles like seen on the tag Mike showed), the more current can be generated.
Most passive systems are VERY lower power. The magnetic field is very close to the receiver, which requires the chip to be very close to the receiver - often having to touch it. This prevents it from picking up several chips in the vicinity. Some use stronger systems to be read at a distance - a lot of door lock card readers can read RFID cards from a foot or so. The Sunpass system reads from about 15 feet! To do that, the magnetic field is much stronger - something you probably don't want to be standing in for a long period of time, like standing in line at Disney
Very little information is sent by an RFID chip - typically just a code, along with some checksums to make sure of the integrity of the code. For an RFID credit card, that's the credit card number, along with a CVV code. That's the major concern over RFID - that someone could read your credit card number from a distance. And it IS possible - remember, the distance is partly a factor on the receiver's field strength. I've noticed more and more merchants will require a second CVV code that's printed on the card only - it's not part of the magstripe or RFID, and needs to be entered manually, to help prevent (not completely solve) this issue.
In Disney's case, it's like a typical door card system - each card has a unique number. It doesn't contain a credit card number, your name, or anything like that. It's just a code. That code is linked in the ginormous Disney Database of Everything to your info. If someone skimmed your RFID code, they couldn't get any personal info (without also having access to the database). They might be able to purchase a few snacks on your account though, and steal your TSM FastPass+...at least until you got it replaced and that code is invalidated.
I don't know about the RFID cards currently being issued, but the MagicBands will (supposedly - never been seen yet) have two passive RFID chips, that operate at different frequencies. They will likely have two different codes as well. This could be for redundancy, or perhaps for enhanced security.
Now about that one last mention of the active transmitter...the MagicBands (according to the FCC filing) will ALSO contain an active transmitter, working at a higher frequency (2.4GHz in fact - basic Wi-Fi frequency...). There is an embedded battery within the MagicBand to power it. Why have that as well? Because they want to enable enhanced experiences activated at a distance - less obvious to the guest that it is happening. They haven't said specifically (it's got to be part of the magic, after all) but one example is where the princesses can call your child by name without being prompted, because that information will be available to them before they approach. Another example is to have a special message on a screen in an attraction when you go by.
Of course, they could potentially do more - send a message to your smartphone when you walk by the Emporium to let you know you can have 10% off that jacket you were looking at earlier, etc.
(just a theoretical example)
This also means that guests who do not get MagicBands and only get the RFID cards, will miss out on some unspecified experiences.
Someone in chat mentioned Near Field Communication, or NFC - a feature found in an increasing number of smartphones, etc. It is based on RFID technologies but is designed as a two-way system, although one-way tags can also be used. The protocols used are different, and contains other features that make it better in privacy situations with smarter devices.
I hope that answers some questions people have on RFID...I think I have rambled on quite enough...
(P.S. I will now refer to the Disney Database of Everything as the DDE, and reclaim those initials...)
There are two basic types of RFID - active and passive. Passive is the more common one, and the one described by Mike. Active actually involves a battery powered transmitter in the tag - a lot of toll systems use an active transmitter that needs to be replaced every couple years because of the battery. SunPass somewhat recently introduced a passive tag system to eliminate the need for replacement - plus the passive tags are a fraction of the cost.
I'll skip further discussion of active RFID for now, but I will mention it once more.
Passive RFID systems work through a combination of magnetic fields and radio signals. A passive tag generally has no battery or other power source at all - yet it contains a radio transmitter, which requires power to work. When passing a conductive metal through a magnetic field, it generates a current - so if you pass a passive RFID chip through a magnetic field, a charge is induced that is enough to power the chip and send a signal. The strength of that signal (which affects range) depends on the strength of the magnetic field and the antenna (which really serves two purposes - to act as the transmitting antenna, but also to convert the magnetic field into the current for power. The "longer" the antenna is (it can be coiled, or go around back in forth in circles like seen on the tag Mike showed), the more current can be generated.
Most passive systems are VERY lower power. The magnetic field is very close to the receiver, which requires the chip to be very close to the receiver - often having to touch it. This prevents it from picking up several chips in the vicinity. Some use stronger systems to be read at a distance - a lot of door lock card readers can read RFID cards from a foot or so. The Sunpass system reads from about 15 feet! To do that, the magnetic field is much stronger - something you probably don't want to be standing in for a long period of time, like standing in line at Disney

Very little information is sent by an RFID chip - typically just a code, along with some checksums to make sure of the integrity of the code. For an RFID credit card, that's the credit card number, along with a CVV code. That's the major concern over RFID - that someone could read your credit card number from a distance. And it IS possible - remember, the distance is partly a factor on the receiver's field strength. I've noticed more and more merchants will require a second CVV code that's printed on the card only - it's not part of the magstripe or RFID, and needs to be entered manually, to help prevent (not completely solve) this issue.
In Disney's case, it's like a typical door card system - each card has a unique number. It doesn't contain a credit card number, your name, or anything like that. It's just a code. That code is linked in the ginormous Disney Database of Everything to your info. If someone skimmed your RFID code, they couldn't get any personal info (without also having access to the database). They might be able to purchase a few snacks on your account though, and steal your TSM FastPass+...at least until you got it replaced and that code is invalidated.
I don't know about the RFID cards currently being issued, but the MagicBands will (supposedly - never been seen yet) have two passive RFID chips, that operate at different frequencies. They will likely have two different codes as well. This could be for redundancy, or perhaps for enhanced security.
Now about that one last mention of the active transmitter...the MagicBands (according to the FCC filing) will ALSO contain an active transmitter, working at a higher frequency (2.4GHz in fact - basic Wi-Fi frequency...). There is an embedded battery within the MagicBand to power it. Why have that as well? Because they want to enable enhanced experiences activated at a distance - less obvious to the guest that it is happening. They haven't said specifically (it's got to be part of the magic, after all) but one example is where the princesses can call your child by name without being prompted, because that information will be available to them before they approach. Another example is to have a special message on a screen in an attraction when you go by.
Of course, they could potentially do more - send a message to your smartphone when you walk by the Emporium to let you know you can have 10% off that jacket you were looking at earlier, etc.

This also means that guests who do not get MagicBands and only get the RFID cards, will miss out on some unspecified experiences.
Someone in chat mentioned Near Field Communication, or NFC - a feature found in an increasing number of smartphones, etc. It is based on RFID technologies but is designed as a two-way system, although one-way tags can also be used. The protocols used are different, and contains other features that make it better in privacy situations with smarter devices.
I hope that answers some questions people have on RFID...I think I have rambled on quite enough...

(P.S. I will now refer to the Disney Database of Everything as the DDE, and reclaim those initials...)