Examining the effect of ATM use on transaction costs

Transaction costs refer to the total costs individuals or institutions incur to obtain a specific good or service. It is not possible to eliminate transaction costs, but it is possible to reduce transaction costs to minimum levels by reducing the costs of various factors present in transaction costs. With technological developments, access to information quickly and efficiently reduces information costs. Automatic Teller Machines (ATMs), which have become widespread and developed with technological developments in the banking sector, are an essential alternative distribution channel for reducing banking system transaction costs and ensuring continuity in banking services. With ATMs, individuals can perform banking services at any time of the day and access cash quickly, easily, and securely without being dependent on bank branches. In this way, the time and transportation costs individuals will spend going to bank branches are reduced. This study analyzed the effects of ATM use on transaction costs. The data used in the study was selected by convenience sampling method and collected from 541 people by survey technique. Regression analysis findings show that ATM usage reduces individuals' transaction costs. In addition, a significant relationship was found between marital status, income variables, and transaction costs. Accordingly, married individuals think that ATM usage reduces transaction costs more than single individuals. Individuals in the upper-income group think that ATM usage reduces transaction costs less than others.