An Ethernet node includes a receiver and transmitter for coupling to an Ethernet link for transceiving Ethernet frames with a remote Ethernet node at a remote end of the Ethernet link. The Ethernet node sends to the remote Ethernet node credit information that enables the remote Ethernet node to know an amount of Ethernet frames the remote Ethernet node is allowed to send to the Ethernet node. The credit information may be specified on a VLAN priority basis and may be included in a header piggy-backed on a host Ethernet frame or may be included in an explicit frame. The credit information may incrementally replenish credits or may specify an absolute credit amount and may be sent in response to processing frames, detection of a frame error, receipt of a request from the remote node or other events.