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Design a Visa-like payment processing system

Last updated: Mar 29, 2026

Quick Overview

This question evaluates a candidate's ability to design a secure, low-latency card payment processing network, testing knowledge of distributed systems, transaction semantics (authorization, capture, refunds, reversals), idempotency, consistency and failure handling, data modeling, APIs, observability, fraud detection, and compliance.

  • hard
  • Databricks
  • System Design
  • Software Engineer

Design a Visa-like payment processing system

Company: Databricks

Role: Software Engineer

Category: System Design

Difficulty: hard

Interview Round: Technical Screen

### System Design Prompt Design a card payment processing system similar to a Visa/Mastercard network. The system should support: - Card-present and card-not-present transactions - Authorization (approve/decline), capture/settlement, refunds, and reversals - High availability and low latency for authorization - Exactly-once/at-most-once semantics where appropriate (no double-charging) - Idempotency and retries across unreliable networks - Auditability, reconciliation, and dispute/chargeback workflows (high level) - Compliance considerations (PCI, encryption, key management) ### What to cover 1. Requirements (functional + non-functional) and assumptions 2. High-level architecture and core services 3. APIs/events and data models (high level) 4. Consistency, idempotency, ordering, and failure handling 5. Storage choices, scaling, partitioning 6. Observability, security, fraud hooks 7. Capacity estimates (rough) and bottlenecks

Quick Answer: This question evaluates a candidate's ability to design a secure, low-latency card payment processing network, testing knowledge of distributed systems, transaction semantics (authorization, capture, refunds, reversals), idempotency, consistency and failure handling, data modeling, APIs, observability, fraud detection, and compliance.

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Databricks
Feb 12, 2026, 12:00 AM
Software Engineer
Technical Screen
System Design
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System Design Prompt

Design a card payment processing system similar to a Visa/Mastercard network.

The system should support:

  • Card-present and card-not-present transactions
  • Authorization (approve/decline), capture/settlement, refunds, and reversals
  • High availability and low latency for authorization
  • Exactly-once/at-most-once semantics where appropriate (no double-charging)
  • Idempotency and retries across unreliable networks
  • Auditability, reconciliation, and dispute/chargeback workflows (high level)
  • Compliance considerations (PCI, encryption, key management)

What to cover

  1. Requirements (functional + non-functional) and assumptions
  2. High-level architecture and core services
  3. APIs/events and data models (high level)
  4. Consistency, idempotency, ordering, and failure handling
  5. Storage choices, scaling, partitioning
  6. Observability, security, fraud hooks
  7. Capacity estimates (rough) and bottlenecks

Solution

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