proficiency badge

(originally, and, chiefly, US, scouting) An embroidered cloth patch awarded to a youth member of the Boy Scouts of America or other scouting organization who successfully completes an activity within an area of study (the badge bearing an image representing the activity), which is either sewn on to the sleeve of the scout's uniform or a sash worn with the uniform; hence, the award itself.

(scouting, US, rare, colloquial) The act of pursuing merit badges.

A distinctive mark, token, sign, emblem or cognizance, worn on one’s clothing, as an insignia of some rank, or of the membership of an organization.

(idiom, US) An outward sign that signifies some distinction.