An RFID-based system for tracking, managing, dispensing and recycling bags, particularly retail and grocery-type bags such as t-shirt bags and the like. The preferred embodiment of the present invention contemplates a system wherein there is employed at a T-Shirt bag fabrication facility an RFID tag dispensing system for affixing an RFID tag to the thermoplastic film utilized in forming a T-shirt bag, which bag is formed into a stack. The RFID tag is associated with the bag at the time of manufacture, and information pertaining to said bag is saved in a central computer, which is subsequently used in shipping and management of the bag(s). A sensor bag rack is provided for supporting the bag pack during dispensing and use of the bags at the checkout counter, which supports the bag during loading and is configured to relay data on said bag as it is removed from the rack for placement in the customers cart, or otherwise provided to the customer. An alternative system contemplates a sensor which counts the bags at they are removed from the rack and compiles the number of bags per customer per transaction, which is used to calculate the deposit to be charged the customer for the bags used. Data on the number of bags used in bagging of the customers goods is thereby provided, which maybe used to calculate a deposit for each bag, which is charged to the customer. The customer may also be associated with each bag for compiling subsequent data on recycling of said bags. Lastly, the present invention contemplates a recycling bin which incorporates an RFID scanner to scan a collection of bags simultaneously as they are returned by the user, utilizing the data to calculate a refund due the customer.