goodwill credit
Definition
A goodwill credit is a refund, discount, or account credit that a business voluntarily gives a customer as a gesture of goodwill, even when the business is not legally required to do so. Companies typically offer these credits to preserve a customer relationship, resolve a complaint, or make up for an inconvenience caused by an error or service failure.
Example
If your supplier ships your order late and you lose a client because of it, the supplier might offer you a $200 goodwill credit on your next invoice to apologize and keep your business.
Watch Out
Accepting a goodwill credit does not automatically mean you are giving up your right to sue for larger damages caused by the same incident, but always read any paperwork that comes with the credit to make sure you are not unknowingly signing away your legal claims.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.