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Stripe·Software Engineer·Onsite - System Design / Architecture·Senior

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Jun 2026

Summary

Stripe system design round for a software engineering role, focused entirely on a single merchant deduplication problem broken into three progressively harder parts. The question was well-structured but the fuzzy matching and clustering sections caught me more off guard than I expected.

Questions Asked (3)

Q1

Given a stream of merchant records with fields like merchant_id, name, address, and phone, how would you detect and remove exact duplicate merchants?

Algorithms & Data StructuresSystem Design
Author's notes

This part was fine.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the definition of 'exact duplicate' and the scale of the stream, then propose a hash-based approach using a composite key of all fields to identify duplicates. Discuss trade-offs between memory and accuracy, and outline how to handle the stream in real-time or batch mode.

Pro tip: Mention that exact duplicates are rare in practice and that you'd likely need fuzzy matching for real-world deduplication, but for this question, focus on exact matches and highlight the importance of a stable hash function to avoid collisions.

1. Clarify requirements

Ask about the volume of records, whether duplicates are exact matches on all fields, and if the stream is bounded or unbounded. Confirm if removal should happen in real-time or in batches.

2. Choose a detection strategy

Propose using a hash set or Bloom filter to track seen records. For exact duplicates, compute a hash of the concatenated fields (e.g., merchant_id, name, address, phone) and check for existence.

3. Handle memory constraints

If memory is limited, discuss using a Bloom filter for probabilistic detection or partitioning the stream by a key (e.g., merchant_id) to process in chunks. Mention trade-offs between false positives and memory usage.

4. Implement removal

For each record, compute its hash; if not seen, add to the set and emit the record; if seen, skip it. For batch processing, sort or group by hash and deduplicate.

5. Consider scalability and edge cases

Discuss distributed processing (e.g., using Kafka and a distributed cache) for high throughput, and handle hash collisions by storing full records or using a secondary check.

Key Points to Mention

  • Hash function choice (e.g., MD5, SHA-256) and collision handling
  • Memory vs. accuracy trade-offs (Bloom filter vs. exact set)
  • Streaming vs. batch processing approaches
  • Distributed systems considerations (partitioning, consistency)
  • Data normalization (e.g., trimming whitespace, case sensitivity) before hashing
  • Time and space complexity analysis

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

Q2

How would you extend that deduplication to handle fuzzy or near-duplicate merchants, where records might differ in casing, punctuation, whitespace, or phone number formatting?

System DesignTechnical Trade-offsData Modeling
Author's notes

Spent a minute actually thinking about what 'canonicalization' means in practice.

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AI HintsAI Generated

Suggested Approach

Start by normalizing records with a canonicalization pipeline (lowercasing, stripping punctuation/whitespace, standardizing phone numbers), then apply fuzzy matching algorithms like Levenshtein or Jaro-Winkler with configurable thresholds. Discuss trade-offs between precision and recall, and propose a scalable architecture using blocking and clustering to handle large datasets.

Pro tip: Emphasize that fuzzy matching should be tunable and monitored—use a feedback loop with human review to adjust thresholds and avoid false positives, especially in a payments context where incorrect merges can be costly.

1. Normalize and standardize

Apply consistent transformations to all records: lowercase, remove punctuation, collapse whitespace, and format phone numbers to E.164. This reduces trivial variations before comparison.

2. Choose fuzzy matching techniques

Select appropriate algorithms (e.g., edit distance, token-based, phonetic) based on merchant name characteristics. Combine multiple signals (name, phone, address) with weighted scoring.

3. Optimize for scale with blocking

Use blocking or canopy clustering to avoid O(n^2) comparisons. Group records by keys like first few characters of normalized name or phone prefix, then compare within blocks.

4. Cluster and resolve duplicates

Apply clustering algorithms (e.g., connected components, hierarchical) to group near-duplicates. Define a canonical record per cluster, possibly using survivorship rules.

5. Evaluate and iterate

Measure precision/recall with labeled data, set thresholds, and implement a feedback loop for manual review. Monitor performance and adjust as data evolves.

Key Points to Mention

  • Normalization techniques: lowercasing, punctuation removal, whitespace normalization, phone number standardization (E.164).
  • Fuzzy matching algorithms: Levenshtein distance, Jaro-Winkler, token-based (Jaccard, cosine), phonetic (Soundex, Metaphone).
  • Trade-offs between precision and recall; threshold tuning and its impact on false positives/negatives.
  • Scalability: blocking, canopy clustering, or locality-sensitive hashing to reduce comparison space.
  • Data modeling: canonical merchant representation, survivorship rules, and handling of conflicting attributes.
  • Operational considerations: monitoring, human-in-the-loop review, and incremental updates.

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

Q3

How would you cluster merchant records using a similarity function like Jaccard on name and address n-grams, grouping records that exceed a similarity threshold? Also discuss the complexity and how you'd scale this.

Algorithms & Data StructuresSystem DesignTechnical Trade-offs
Author's notes

This is where I stumbled.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the requirements: data size, similarity threshold, and whether exact or approximate clustering is acceptable. Then describe a two-step approach: first, use blocking or locality-sensitive hashing (LSH) to reduce candidate pairs, then apply Jaccard similarity on n-grams to those pairs and cluster using union-find or connected components. Finally, discuss the time complexity (e.g., O(N^2) for naive pairwise comparison) and how to scale using distributed computing, indexing, or approximate methods.

Pro tip: Mention that Jaccard similarity on n-grams is a set-based measure, so you can optimize by using MinHash to estimate it efficiently, and that clustering is essentially finding connected components in a similarity graph—this shows you understand both the algorithm and its practical implementation.

1. Clarify requirements and constraints

Ask about data volume, acceptable false positives/negatives, threshold value, and whether real-time or batch processing is needed. This determines the choice of exact vs. approximate methods.

2. Preprocess and generate n-grams

Normalize names and addresses (lowercase, remove punctuation), then generate character or token n-grams. Represent each record as a set of n-grams for Jaccard computation.

3. Reduce candidate pairs

Use blocking (e.g., by zip code or first letter) or locality-sensitive hashing (MinHash + LSH) to avoid comparing all pairs. This reduces complexity from O(N^2) to near-linear for many datasets.

4. Compute similarity and cluster

For candidate pairs, compute Jaccard similarity (or estimate via MinHash). If similarity exceeds threshold, add an edge between records. Then find connected components using union-find or graph traversal to form clusters.

5. Analyze complexity and scaling strategies

Naive pairwise comparison is O(N^2 * L) where L is n-gram set size. With LSH, it's roughly O(N * cost of hashing). Scale by distributing MinHash/LSH across nodes (e.g., MapReduce), using approximate clustering, or incremental clustering for streaming data.

Key Points to Mention

  • Jaccard similarity definition and its use on n-gram sets for names and addresses.
  • MinHash and LSH for efficient approximate similarity search and candidate pair generation.
  • Union-find (disjoint set) data structure for efficient clustering of connected components.
  • Time complexity: O(N^2) naive vs. O(N) with LSH, and space complexity considerations.
  • Scaling strategies: distributed computing (e.g., Spark), indexing (e.g., inverted index), and handling incremental updates.
  • Trade-offs between exact and approximate clustering, and threshold tuning for precision/recall.

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