ALBANY, N.Y. — Banks are charging ever-higher ATM fees. But is $3 too much to bear? A new study by Bankrate Inc. found that the average ATM surcharge, typically charged to folks using another bank's card, has jumped to $1.78, the highest on record and 14 cents higher than last year.

Adding to consumer pain, Bank of America has upped its ATM fee to $3, which could lead other banks to do the same.

"The situation for banks is getting more and more competitive," said Theodore Kovaleff, an industry analyst with Manhattan-based Sky Capital. "What all the institutions are trying to do is get (declining income) back on fees, and the normal consumer doesn't factor in the fees."

Indeed, some customers shrug off the charges — even when they're aware of them.

Lisa Ruff, for example, left her downtown Albany, N.Y., office and stuck her credit union debit card into an ATM owned by Berkshire Bank. That cost her $2, but saved her a two-block walk to the credit union's machine.

"It's not a problem," Ruff said. "The fees aren't going to kill me."

So far, other major banks haven't followed Bank of America's move. Most are charging $2 for noncustomers to use their ATMs, although 22 charge more than that.

Bankers have complained in recent years about an interest-rate environment that is slicing profits.

But Greg McBride, a senior financial analyst with Bankrate.com said no one should worry about banks.

"Fee increases helped banks in 2006 achieve some of the most profitable quarters in the history of the industry," he said. "Fees help stabilize banks when interest rates are unstable."

Consumers will pay about $4.4 billion in ATM fees this year, Bankrate estimated.

Still, there's nothing new about rising ATM fees. Bankrate's study shows that ATM fees have risen nearly every year in the past 10 years. In 1998, the average bank surcharge was just 89 cents.

Bert Ely, an independent banking consultant in Alexandria, Va., said it should be interesting to see if other banks follow Bank of America and also charge $3. Fear of a consumer backlash, he said, could prevent banks from doing so.

"One of the ironies of this is that if ATM fees get too high, ATM revenue could actually drop" if consumers avoid the charges, Ely said.