The rise of small, skills-focused credentials, also known as micro-credentials, has garnered considerable attention in recent years. By offering micro-credentials, institutions of higher education can provide additional credential options, thereby attracting more diverse audiences beyond degree-seekers. However, amidst their growth, fundamental questions surrounding their effective design and pedagogical implementation remain. This lack of clarity may inadvertently hinder their effectiveness. To address this gap, there is a need for studies that examine the perspectives and practices of faculty involved in micro-credential development and delivery. This study employed a single-embedded case design to investigate the perceptions and practices of faculty members who implemented micro-credentials for a pilot program at a large public research university. Specifically, this study aimed to identify faculty perceptions of the assessment and credentialing affordances of micro-credentials, and strategies employed to integrate these affordances into the design of micro-credentials. In-depth interviews were conducted with faculty members representing a diverse array of academic disciplines. Findings revealed that faculty need support in recognizing and integrating certain characteristics of quality assessments when designing micro-credentials, including aligning of assessments with a micro-credential's delivery method, and integrating equity-oriented assessments into the design. These findings underscore the necessity for interventions and training programs aimed at integrating quality assessment practices into micro-credential design.