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Airbnb·Software Engineer·Technical Phone Screen·Intermediate

IntermediatePrefer not to say
May 2026

Summary

Airbnb software engineer interview with a fairly meaty algorithmic problem around refund allocation. The question had enough edge cases to keep you busy for a while, and the follow-up on complexity felt like the real test.

Questions Asked (1)

Q1

Given a list of completed payment transactions, each with a payment method, date, and amount, and a refund amount R, write an algorithm that issues refunds by always refunding one payment in full before moving to the next, preferring methods in the order CREDIT then CREDIT_CARD then PAYPAL, and within the same method refunding the most recent transaction first. Return the list of refund allocations with payment id, method, and amount. Also explain your time complexity and data structures.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

I went straight to sorting and probably over-explained it.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the problem requirements and edge cases, then propose a solution that groups transactions by payment method, sorts each group by date descending, and iterates through methods in the specified priority order to allocate refunds. Finally, analyze the time and space complexity and discuss potential optimizations or trade-offs.

Pro tip: Demonstrate awareness of real-world constraints: mention that refunds might need to be idempotent and that the algorithm should handle partial refunds if the refund amount is less than the payment amount, even though the problem states 'refund one payment in full'.

1. Clarify Requirements and Edge Cases

Ask questions to confirm assumptions: Can a payment be partially refunded? What if the refund amount exceeds total payments? Should we consider only completed transactions? How to handle ties in dates?

2. Design Data Structures and Algorithm

Group transactions by method using a hash map, sort each group by date descending, then iterate through methods in priority order (CREDIT, CREDIT_CARD, PAYPAL) and within each method refund full payments until the refund amount is exhausted.

3. Implement and Handle Edge Cases

Write pseudocode or actual code, ensuring to handle cases where the refund amount is less than a payment amount (partial refund) and when the refund amount exceeds total available.

4. Analyze Complexity and Trade-offs

Explain that sorting dominates time complexity: O(n log n) overall, where n is number of transactions. Space complexity O(n) for storing grouped transactions. Discuss alternative approaches like using a priority queue per method.

5. Test with Examples

Walk through a small example to verify correctness, including edge cases like refund amount exactly matching a payment or exceeding total.

Key Points to Mention

  • Grouping transactions by payment method using a hash map for O(1) access.
  • Sorting each group by date descending to ensure most recent first.
  • Iterating methods in the specified priority order (CREDIT, CREDIT_CARD, PAYPAL).
  • Handling partial refunds when the refund amount is less than the payment amount.
  • Time complexity: O(n log n) due to sorting; space complexity: O(n).
  • Potential optimization: use a max-heap per method to avoid sorting all transactions upfront.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.