A network interface card, more commonly referred to as a NIC, is a device that allows computers to be joined together in a LAN, or local area network. Networked computers communicate with each other using a given protocol or agreed-upon language for transmitting data packets between the different machines, known as nodes. The network interface card acts as the liaison for the machine to both send and receive data on the LAN.

The most common language or protocol for LANs is Ethernet, sometimes referred to as IEEE 802.3. A lesser-used protocol is Token Ring. When building a LAN, a network interface card must be installed in each computer on the network and all NICs in the network must be of the same architecture. For example, all must either be Ethernet cards, Token Ring cards, or an alternate technology.

An Ethernet network interface card is installed in an available slot inside the computer. The NIC assigns a unique address called a MAC (media access control) to the machine. The MACs on the network are used to direct traffic between the computers. The back plate of the network interface card features a port that looks similar to a phone jack, but is slightly larger. This port accommodates an Ethernet cable, which resembles a thicker version of a standard telephone line. Ethernet cable must run from each network interface card to a central hub or switch. The hub or switch acts like a relay, passing information between computers using the MAC addresses and allowing resources like printers and scanners to be shared along with data.

A network interface card does not have to be hard wired with physical cable. Wireless Ethernet cards are installed like their wired counterparts, but rather than a port for an Ethernet cable, the card features a small antenna. The card communicates with the central wireless switch or hub via radio waves. Wireless LANs may have some restrictions depending on the material the building is made from. For example, lead in walls can block signals between the network interface card and hub or switch.

When buying components for a LAN, make sure the NICs and hub or switch have the same capabilities. The entire network must be either wired or wireless, so a wireless network interface card cannot talk to a wired switch or hub. In addition, newer versions of hardware will likely support more features and/or greater speeds than older versions. Make sure your central switch or hub can utilize the highest capabilities of the network interface card under consideration.

For those who wish to connect LANs located in different areas of the city, state or country, ATM (asynchronous transfer mode) can create wide area networks or WANs by connecting LANs together. LANs are still built with a network interface card in each networked computer, but ATM uses broadband Internet access to link the LANs to online ATM switches. This type of ATM WAN is referred to as an Internetwork.