Multifunctional devices fall into three categories. Low-end devices are generally designed for small offices and home offices. These machines are typically built around a fax machine, but they connect to a computer for scanning and printing. They can also be used as a convenience copier for items that can feed through the fax scanner.

OCR (optical character recognition) software for your scanner will automatically covert your documents to word processing format for your PC. OCR software is quite often bundled with other software in the MFD package, especially in the medium to higher range of devices.

Mid-range MFDs are based around a small copier. These machines include a book platen for copying magazines, books, or other three-dimensional items. They also connect to a computer for printing and scanning, and they can send and receive faxes if attached to a phone line. These units are ideal for small workgroups, where workers can reduce the time needed to walk to larger office machines.

High-end MFDs combine copying and printing functions into a single unit. These units offer extremely fast printing, plus sorting and finishing options (such as stapling) normally not found on printers. The idea behind these machines is to provide copier-like functionality from a desktop computer, reducing the need for people to print a document and then walk it over to the copier to make multiple sets.

Inkjet v. laser: MFDs are usually available in inkjet- and laser-based models; both have their own individual advantages. Inkjet MFDs cost less initially, produce quality output in vivid color, and are more adaptable to small office and home environments. On the other hand, laser MFDs are priced slightly higher, but produce high quality output at the lowest cost per page, making them more popular in larger office setups.