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Stripe·Software Engineer·Technical Phone Screen·Intermediate

IntermediatePrefer not to say
May 2026Remote

Summary

Stripe coding interview, got a debt-settling graph problem that looked deceptively clean until the follow-up hit. The core question was fine but the scalability piece is where things got uncomfortable.

Questions Asked (2)

Q1

Given a list of loan records between people (each with a lender, borrower, and amount), find the minimum number of transactions needed to settle all debts to zero.

Algorithms & Data Structures
Author's notes

Started by computing net balances per person which felt right, then tried to explain the backtracking approach.

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AI HintsAI Generated

Suggested Approach

First, compute each person's net balance by summing all amounts they lent and borrowed. Then, use a greedy or backtracking approach to match the largest creditor with the largest debtor, settling as much as possible in each transaction, to minimize the total number of transactions. This reduces the problem to finding the minimum number of transfers to zero out all balances.

Pro tip: Mention that while the greedy approach is intuitive and often optimal, the problem is NP-hard in general, so for large inputs you might need heuristics or acknowledge the complexity. Also, clarify that the minimum number of transactions is at most n-1 where n is the number of people with non-zero net balance.

1. Compute net balances

Iterate through all loan records and calculate the net amount each person is owed or owes. This simplifies the problem to a list of positive and negative balances that sum to zero.

2. Identify debtors and creditors

Separate people into debtors (negative net balance) and creditors (positive net balance). Ignore anyone with zero balance as they are already settled.

3. Apply greedy matching

Repeatedly match the largest debtor with the largest creditor, transferring the minimum of their absolute amounts. This reduces at least one balance to zero per transaction, minimizing the number of transactions in many cases.

4. Optimize with backtracking (optional)

For an exact minimum, use backtracking or dynamic programming to explore all possible matchings, but note that this is exponential. In practice, greedy is often sufficient and efficient.

5. Analyze complexity and edge cases

Discuss time complexity: O(n log n) for sorting balances plus O(n) for matching, where n is the number of people. Mention edge cases like all balances zero, or a single person owing multiple others.

Key Points to Mention

  • Net balance calculation reduces the problem to a simpler form.
  • Greedy algorithm: match largest debtor with largest creditor.
  • The problem is equivalent to minimizing transactions in a graph where nodes are people and edges are debts.
  • The minimum number of transactions is at most n-1, where n is the number of non-zero balances.
  • The problem is NP-hard in general, so greedy is a heuristic that often works well.
  • Time and space complexity analysis: O(n log n) time, O(n) space.

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

Q2

If this debt graph scales to hundreds of people, how would you keep the algorithm efficient? What pruning or heuristics would you introduce?

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

This is where I kind of stalled.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the graph's structure and the specific efficiency bottleneck (e.g., cycle detection, shortest path, or debt settlement). Then propose a combination of algorithmic optimizations (e.g., union-find, topological sort) and domain-specific pruning (e.g., ignoring small debts, netting balances) to reduce the problem size. Finally, discuss trade-offs between exactness and performance, and suggest heuristics like greedy matching or threshold-based pruning.

Pro tip: Emphasize that in real-world systems like Stripe, perfect optimality is often sacrificed for scalability and simplicity—show you understand the business context by proposing heuristics that maintain correctness within acceptable bounds.

1. Clarify the problem and constraints

Ask about the graph's properties (directed/undirected, weighted, dynamic) and the specific operation that needs to scale (e.g., cycle detection, debt settlement). Identify the current algorithm and its complexity.

2. Identify bottlenecks and propose algorithmic improvements

Analyze where the current algorithm fails at scale (e.g., O(n^2) or O(n^3) operations). Suggest efficient data structures (e.g., adjacency lists, union-find) and algorithms (e.g., topological sort, strongly connected components) to reduce complexity.

3. Introduce pruning and heuristics

Propose domain-specific pruning: ignore debts below a threshold, net balances to reduce edges, or use greedy matching to settle debts approximately. Discuss how these affect accuracy and performance.

4. Discuss trade-offs and validation

Explain the trade-offs between exactness and scalability, and how you would validate the heuristic's impact (e.g., via simulation or A/B testing). Mention monitoring and fallback strategies.

Key Points to Mention

  • Graph representation: adjacency list vs. matrix, and impact on memory/time
  • Algorithmic optimizations: union-find for cycle detection, topological sort for DAGs, SCC for cycles
  • Pruning: threshold-based edge removal, netting balances to reduce edges
  • Heuristics: greedy matching, approximation algorithms for debt settlement
  • Complexity analysis: from O(n^2) to O(n log n) or O(n) with optimizations
  • Trade-offs: exact vs. approximate, and business impact of small inaccuracies

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