What is a transponder/toll tag?

A transponder, also known as a toll tag, is a small electronic device used in electronic toll collection systems. It is typically mounted on the windshield of a vehicle and communicates wirelessly with toll collection equipment as the vehicle passes through toll lanes.
NextPass is a toll payment solution that doesn’t require any physical equipment like a transponder or toll tag. As you drive through free-flowing toll lanes, the tolling agency captures an image of your license plate. NextPass then processes this information and automatically charges the toll to your account.