Faction rewards
From Guild Wars Wiki
Each character can earn account-based faction points. There are currently two types of faction points. The first is available to all campaigns, called Balthazar faction. The Kurzick and Luxon faction points are introduced in (and only available in) the Factions campaign.
[edit] Balthazar faction
The Priests of Balthazar found in every PvP outpost will allow you to exchange the Balthazar faction you have earned from participating in PvP battles to unlock runes, weapon upgrades, and skills for your account. A PvE character will not learn any skills which are unlocked using this method, however these skills will be available for any PvP-only characters you create and any heroes you have.
Once unlocked however, these skills can be learned by PvE characters through the use of tomes.
These priests are usually found only in PvP areas. They can also be added to your Guild Hall.
[edit] Kurzick/Luxon faction
Faction earned with either the Luxons or the Kurzicks can either be exchanged in lots of 5,000 to raise the faction standing of your guild, or in lots of 5,000 for a rare crafting material, or a passage scroll. Luxon faction can be exchanged for jadeite shards, or a Passage Scroll to the Deep, and Kurzick faction can be exchanged for amber chunks, or a Passage Scroll to Urgoz's Warren at the Luxon Scavenger and Kurzick Bureaucrat respectively.
To progress past a certain point in the storyline of Guild Wars: Factions, you will need to have 10,000 faction with either the Luxons or the Kurzicks. Because of this, it is recommended that you do not exchange your faction until after you complete that particular quest; otherwise, you will need to re-gather the 10,000 faction. (See Primary Quests: Befriending the Luxons and/or Befriending the Kurzicks)
Exchanging faction with one of these two groups will cause you to lose faction that you have earned with the other. For example, spending 10,000 Luxon faction will gain you two Jadeite Shards, but you will also lose 10,000 Kurzick faction for helping out their enemies.
Faction reward NPCs for these two faction points can be found in the House zu Heltzer and Cavalon for the Kurzicks and the Luxons respectively. Additionally, Jade Quarry, Fort Aspenwood, Great Temple of Balthazar, and your Guild Hall will also have Faction Reward NPCs.
