Merits and Flaws are a special and optional type of character traits used in the old World of Darkness's Storyteller System to flesh out characters. They both involved the use of freebie points. Merits and flaws were used to flesh out a character and add playable advantages or disadvantages that were otherwise not covered by the typical character traits. They were usually not found in the main rulebook of each line, but were instead published in that line's Players Guide.
The range of merits and flaws are diverse, but there are several basic merits and flaws that are common to all lines. Physical, social, and mental were among the most common categories, as were psychological, supernatural and ally-type merits and flaws. Other types were available, depending on the type of creature being created, and were usually related to that specific supernatural breed. A classic Vampire: The Masquerade flaw, for example, was Thin Blood, used to represent a character above generation thirteen.
Merits, as the name suggests, provided boons or advantages and could be purchased through freebie points or experience only. Classic examples of merits include Common Sense, Code of Honor, Eidetic Memory, Ambidextrous, True Love, Lucky, and the infamous Fast Learner (which many took for the extra experience point gained at the end of every chapter!). Also seen as merits were alliances with a creature of another supernatural breed, such as a wraith ally for a Garou.
Merits are the predecessors of the Storytelling System's Merit system.
Flaws obviously provided the opposite effect. Unlike merits, adding a flaw to a character allowed you to gain freebie points equal to that flaw's rating; however, there was a limit of seven points that could be gained in this manner. Classic flaws include Phobia, Curse, Vengeance, Amnesia, Distinctive Appearance, Enemy, and a set of flaws which limited the amount of points that could be spent in each Ability. Inept limited the points one could take in Talents, Uneducated limited Knowledges, and Unskilled affected Skills.
A very different system for handling Flaws is used by the Storytelling System, in which they are unrelated to Merits.
Merits
One
Animal Affinity The character has an innate understanding of and rapport with a certain type of animal. All difficulties dealing with that Animal are reduced by 2. (DSBH)
Elysium Domain The character control's some part of the city's Elysium. She is its recognized protector and in many ways it is considered her domain but is does not belong to the character and other Kindred can enjoy it freely. The character gains the respect as the Keeper of Elysium for that which she controls. (DSBH)
Entrepreneur Making money comes easy to the character. All difficulty of rolls that involve acquiring money through business are reduced by 2. (DSBH)
Safe Passage The character has the right to pass through the territory of some other vampire or sect that does not normally allow others (or at least members of his particular sect) passage through their territory. Toreador often have this Merit for various hostile cities, allowing them to enjoy the Elysium of those cities without fear. (DSBH)
Three
Mage Companion The character is friends with someone who has Awakened and is a Mage. She can be of any Tradition, Craft, or Convention but most likely is a member of the Euthanatos or Verbena. (DSBH)
Wraith Companion The character has a mentor that is a wraith. The character will be able to touch and see him if in the Underworld, but in the Skinlands only the wraith will be able to contact the character unless the character has rituals or powers that allows her to see and interact with the Shadowlands (cWOD) from the Skinlands. (DSBH)
Four
Inconnu Associate The character is friends with another Kindred who belongs to the Inconnu. Though he may call upon his friend in times of need, she may call on him as well. Neither of the sects appreciate such relationships, and his leaders would punish him if his friendship were discovered. Arranging methods of communication and meeting places will be difficult. (DSBH)
Seven
Capable Assistant The character has another vampire who acts as her right hand in everything. This vampire is loyal, capable, and powerful enought to stand against anyone in her way. She may be Blood Bound to the character but would serve anyway. (DSBH)
Flaws
One
Blackmailed The character is being blackmailed by another Kindred who is powerful and smart enough to keep the character from destroying her nemesis. The character is used by the Blackmailer to her personal advantage, forcing all sorts of awful things. Money or blood may be taken or she may force the character to aid the blackmailer in her own schemes. (DSBH)
Two
Demon Plagued Either at one time the character practiced Infernal Diablerie and then broke it off or ran a foul of Baali, or another Infernalist and her cultists. Whatever the case, the vampire is now plagued by the evil efforts of a demon. It constantly tries to cause all sorts of problems but seldom has the power to face the character directly. (DSBH)
Faerie Hatred The character is hated by the Fae. They find her totaly repulsive either for a past deed or nothing at all. They will thrawt any and all plans the character has if they are near by. (DSBH)