If the system uses passwords or keys, the way that a reader know which password or key to use is through the use of : RFID(Radio frequency identification) system and No, do readers contain all passwords or keys.
In order to identify and monitor an object, RFID employs radio waves to send data from an electronic tag, also known as an RFID tag or label, through a reader attached to the object. Some RFID tags can be read from a distance of several meters and outside the reader's line of sight.
Therefore, the Best place to store passwords is seen as: the safest place to save passwords is in a trusted password management program. You can simply create, maintain, and access your protected passwords with a password manager.
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