Merits are a type of currency awarded for achieving goals within Torn which generally give Medals along with merits city e.g. a certain level, they can also be bought at the points building for 500 points (roughly 30M). There is a limit on the amount of merits that can be bought; one merit can be bought for every 2 levels you upgrade, leading to a maximum of 50 merits that can be bought at level 100.
Merits can be reset for a cost of points. The first reset costs 500 points, increasing 250 points at a time (second reset costs 750 points) up to a cap of 5000 points per reset. Gaining Honors and Medals rewards you with a merit.
Merits are used to gain bonuses, all of which are incremental (price increases by 1 merit after every upgrade) and you can upgrade them up to 10 times, at a cost of 55 merits these are:
You can spend merits to give you passive bonuses with fighting stats. A passive bonus is constantly modifying your stats as they increase by a fixed percentage rate.
Note: At 10/10 upgrades stats act as if they are boosted by 30%.
Sharpness - Passive bonus to Speed
Brawn - Passive bonus to Strength
Protection - Passive bonus to Defense
Evasion - Passive bonus to Dexterity
These upgrades will increase your accuracy and damage done with the weapon type of your choice:
Note: it is unclear how much of a boost it gives to the damage and accuracy boost.
Heavy Artillery Mastery
Machine Gun Mastery
Hospitalizing - Increases time when hospitalizing people by +10 minutes.
Stealth - Increases ability to do stealth attacks (unclear how much this determines the ability to "stealth" someone.)
Masterful Looting - Increases money gained from mugging (current mugging is around 0.67%, it is rumoured that this adds a further 1% to muggings.)
Bank Interest - Increases bank interest by a small amount.
Awareness - Increases ability to find items (note: even with 10/10 awareness, it is still possible to never find anything, it is down to luck, and this just increases your luck.)
Education Length - Decreases education course length by 2%.
Crime Points - Increases crime success ability by +3%.
Life Points - Constantly modifies life by +5%( your life will also go up as you level, so spending your merits on this when you are level 1, is the same as spending your merits on this at level 50.)
Critical Hit Rate - Increases critical hit rate by 1% (Default critical hit rate is approximately 5% without upgrades.)
Nerve Bar - Increases maximum nerve bar by 1 point.
- You used to be able to upgrade daily Casino token gain by +10 per level, this was removed on 02/03/12 when token refills were implemented. 
- Merits used to be able to be spent on gaining stats, health, yasukuni swords, rusty swords and a firewalk virus.
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