WASHINGTON, D.C. - In the half-year since the Durbin amendment that lowered swipe fees went into effect, retailers of lower-end items say that the interchange fees are unfairly high. Merchant coalitions that had pushed for the reform bill give the law low grades, while financial firms are still against it, the National Journal reports.

Retailers have filed a lawsuit claiming the law has raised interchange fees too much for sellers of cheaper goods, with data on how the legislation has impacted merchants due in late April.

"The Durbin amendment did not solve all the world??s problems and we are very clear about that," said Doug Kantor, a partner at Steptoe & Johnson LLP and counsel for the Merchants Payments Coalition. "But if the Fed had written the rule correctly then there would not be these very mixed results ?? you wouldn??t have some of these negative impacts that we have seen."

Under the Durbin amendment, the Federal Reserve Board raised the base swipe fee to 21 cents, with an average fee at 24 cents. As a result, larger banks registered a 26% loss in swipe fees. Smaller firms, such as community banks, saw a rise in interchange fees of around $507 million.

Both merchants and bankers both agree that the reform has helped retailers of expensive products, such as home appliances, more than those that sell cheaper goods, such as convenience stores. Banks have increased the fee for smaller items up to the limit, instead of a percentage of the transaction.

"That has translated into a sixfold increase for these smaller merchants selling everyday items and a massive decrease for merchants selling bigger-ticket items," said Trish Wexler, spokeswoman for the Electronic Payments Coalition.