Merits

Merit points are what a player receives when they turn in Powerplay (bonds). These Merit points are used to determine the rating that the player will receive at the end of the week for their allied faction. There are 5 obtainable ratings in the game. Each rating comes with its own associated perks that vary by faction. However each ratings merit point requirements and cash payouts will remain the same no matter the faction the player belongs to.

Ratings

Basic rating. This rating requires no Merit to achieve and pays out 1,000 CR at the end of the cycle.
Rating two requires 100 merit to achieve and pays out 50,000 CR at the end of the cycle.
Rating three requires 750 merit to achieve and pays out 500,000 CR at the end of the cycle. It also unlocks faction specific items provided you have been aligned with your faction for four weeks.
Rating four requires 1,500 merit to achieve and pays out 5,000,000 CR at the end of the cycle.
Rating five requires 10,000 merit to achieve and pays out 50,000,000 CR at the end of the cycle as well as granting significant faction specific advantages.

How to obtain Merit Points

Players have several choices when it comes to obtaining merit points. While more may be released in the future the following are the methods to earn merit are known to work.

Combat with non allied factions players.
Combat in expansion system.
Killing foreign diplomats.
Transportation of cargo for the fortification of ones own factions systems.
Transportation of cargo in preparation for system expansion.

Combat with players

Combat with players who belong to a non allied faction will award 30 merit points per kill. Despite the appearance of the Galactic Powers Standing screen there are only three factions as far as the merit points system is concerned when pertaining to player combat. These are the Empire, Federation, and Alliance. Players hoping to earn merit through player vs. player combat should be aware that attacking players who belong to the same faction will result in a net loss in merit. For example if a player belonging to Zachary Hudsons faction were to kill a player belonging to Felicia Winters faction that player would lose merit because both factions belong to the Federation.

Combat in Expansion Systems

Combat in Expansion systems can only be done when a faction that expands through combat is expanding. The factions that expand through combat are A Lavigny Duval, Archon Delaine, Denton Patreus, and Zachary Hudson. In order to utilize this method for earning merit a player must fly to the expansion system and find the expansion related Military Strike Zones. These Military Strike Zones have different names depending on the expansion faction. Players should watch out for are Crime Sweeps, Security Sweeps, Resistance Pockets, and Violent Protests. Players can earn merit in any factions Military Strike Zones by either helping allied forces or opposing the expansion of enemy factions. It is important to note that players must pick a side under their functions tab in order to earn merit.