Abstract: A reader and a corresponding method are provided for processing transponder data signals received from a transponder in an RFID system. The reader includes an exciter which generates excitation signals, a receiver which conditions the transponder data signals, an antenna coupled to the exciter and receiver which transmits the excitation signals and receives the transponder data signals, and a controller coupled to the receiver. The controller receives the conditioned transponder data signals and demodulates the conditioned signals to extract the transponder data. The controller is configured to detect the amplitude of the conditioned signals and to control operation of the receiver as a function of the amplitude of the conditioned signals.