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Stripe·Software Engineer·Technical Phone Screen·Intermediate

Intermediate
May 2026

Summary

Stripe SWE interview with a coding round focused on building a small invoice processing system from scratch. More design-heavy than I expected for a coding screen, lots of edge case discussion baked in.

Questions Asked (4)

Q1

Design and implement a basic invoice system with line items (description, quantity, unit price, tax rate), computed totals (subtotal, tax, total), and a payment status that updates as payments are recorded.

System DesignData ModelingAPI & Integrations
Author's notes

The core model felt straightforward until I started thinking about where to compute the totals.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements and constraints, then design a data model that separates line items, invoices, and payments to ensure accurate totals and status updates. Implement the core logic with attention to monetary precision, idempotency, and state transitions, and expose a clean API for recording payments and retrieving invoice status.

Pro tip: Use integer cents for all monetary calculations to avoid floating-point errors, and make payment recording idempotent with a client-supplied idempotency key—this mirrors Stripe's own API design and shows production maturity.

1. Clarify requirements and scope

Ask about expected scale, currency handling, tax rules (inclusive/exclusive), payment methods, and whether partial payments or refunds are needed. Confirm the API surface and any constraints like idempotency or concurrency.

2. Design the data model

Define entities: Invoice (id, status, subtotal, tax, total, amount_paid, balance), LineItem (description, quantity, unit_price, tax_rate), and Payment (id, invoice_id, amount, method, timestamp). Use integer cents for money and store tax rate as a decimal fraction.

3. Define computation and state logic

Compute line item totals as quantity * unit_price, subtotal as sum of line totals, tax as sum of (line_total * tax_rate), and total as subtotal + tax. Derive payment status from amount_paid vs total: unpaid, partially_paid, paid, or overpaid.

4. Design the API and payment recording

Expose endpoints like POST /invoices, GET /invoices/{id}, and POST /invoices/{id}/payments. Ensure payment recording is idempotent (via idempotency key) and updates the invoice status atomically, handling concurrent payments with optimistic locking or transactions.

5. Discuss edge cases and extensions

Address rounding, multiple currencies, tax-inclusive pricing, partial payments, refunds, and audit trails. Mention how to scale (e.g., event sourcing, ledger) and ensure consistency across distributed systems.

Key Points to Mention

  • Use integer cents for all monetary values to avoid floating-point precision issues.
  • Model line items, invoices, and payments as separate entities with clear relationships.
  • Compute totals server-side and store them denormalized for performance, but ensure they are recalculated on changes.
  • Derive payment status from the balance (total - amount_paid) rather than storing it directly, or update it atomically on payment.
  • Implement idempotency for payment recording using a client-supplied key to prevent duplicate charges.
  • Handle concurrency with database transactions or optimistic locking to avoid race conditions on payment updates.

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

Q2

How would you handle rounding errors when computing tax across multiple line items?

Technical Trade-offsAPI & Integrations
Author's notes

Blanked for a second here.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the requirements: whether rounding should occur at the line-item level or on the total, and what rounding mode (e.g., half-up, banker's) is expected. Then propose a strategy that minimizes cumulative error, such as using integer arithmetic (e.g., cents) and applying rounding only at the final step, while ensuring consistency with accounting standards. Finally, discuss trade-offs between simplicity, accuracy, and performance, and mention how you would test and validate the approach.

Pro tip: Mention that Stripe's API often expects amounts in the smallest currency unit (e.g., cents) and that you should avoid floating-point arithmetic entirely; use integers or decimal libraries to prevent precision loss.

1. Clarify Requirements

Ask whether rounding should be applied per line item or on the total, and what rounding rule (e.g., half-up, half-even) is required by business or regulatory constraints.

2. Choose a Rounding Strategy

Decide between rounding each line item then summing, or summing exact values then rounding once. Consider using the largest remainder method to distribute rounding differences fairly.

3. Implement with Exact Arithmetic

Use integer arithmetic (e.g., cents) or a decimal library to avoid floating-point errors. Apply rounding only at the final step if possible.

4. Validate and Test

Write unit tests for edge cases (e.g., .005, multiple items with fractional cents) and verify that the sum of rounded line items matches the rounded total when required.

5. Discuss Trade-offs

Explain the trade-offs between per-line rounding (simpler but can cause total mismatch) and total rounding (more accurate but may require distributing adjustments).

Key Points to Mention

  • Use integer arithmetic (e.g., cents) or decimal libraries to avoid floating-point precision issues.
  • Apply rounding at the final step (total) rather than per line item to minimize cumulative error.
  • If per-line rounding is required, use the largest remainder method to distribute rounding differences and ensure the sum matches the rounded total.
  • Be aware of different rounding modes (half-up, half-even/banker's) and their implications for financial calculations.
  • Consider Stripe's API conventions: amounts are in the smallest currency unit, and rounding must be consistent with their expectations.
  • Test edge cases such as amounts ending in .005 and multiple line items with fractional cents.

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

Q3

What input validation would you add to the invoice creation and payment recording APIs?

API & IntegrationsTechnical Trade-offs
Author's notes

Pretty standard stuff.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the API contracts and business rules for invoices and payments, then systematically cover validation layers: syntactic (types, formats), semantic (business logic, referential integrity), and security (authorization, idempotency). Emphasize trade-offs between strict validation and flexibility, and mention how validation errors should be returned consistently.

Pro tip: Show awareness of Stripe's API design principles: use idempotency keys for payment recording to prevent duplicate charges, and validate amounts against currency-specific constraints (e.g., zero-decimal currencies). Also, consider validation at the edge (API gateway) vs. service layer to balance performance and maintainability.

1. Clarify requirements and contracts

Ask about the API specification (e.g., OpenAPI), expected clients, and business rules. Understand what fields are required, optional, and their constraints.

2. Validate structure and format

Check data types, required fields, string lengths, patterns (e.g., email, currency codes), and numeric ranges. Use JSON Schema or similar for declarative validation.

3. Enforce business logic and referential integrity

Validate that referenced entities exist (e.g., customer, invoice), amounts are positive and within limits, currencies match, and state transitions are allowed (e.g., cannot pay a voided invoice).

4. Apply security and idempotency checks

Ensure the caller is authorized, validate API keys/scopes, and require idempotency keys for payment creation to prevent duplicates. Sanitize inputs to prevent injection attacks.

5. Define error handling and observability

Return consistent, actionable error responses (e.g., 400 with error codes and messages). Log validation failures for monitoring and debugging without exposing sensitive data.

Key Points to Mention

  • Use of JSON Schema or OpenAPI for declarative validation
  • Idempotency keys for payment recording to avoid duplicate charges
  • Currency-specific amount validation (e.g., zero-decimal currencies, minimum/maximum amounts)
  • Referential integrity checks (e.g., invoice exists, customer exists, payment method valid)
  • Authorization and scope validation (e.g., API key permissions)
  • Consistent error response format with clear error codes and messages

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

Q4

Should overpayments be rejected outright or handled some other way? Walk through your reasoning.

Technical Trade-offsProduct Sense & IdeationAPI & Integrations
Author's notes

This was the most interesting part of the discussion.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the context—what kind of overpayment, who is involved, and what the business goals are. Then evaluate trade-offs between rejecting outright and alternative handling, considering factors like user experience, financial risk, and operational cost. Finally, propose a nuanced solution that balances these factors, possibly with conditional rules or a hybrid approach.

Pro tip: Demonstrate product sense by considering the user's perspective: an overpayment might be a mistake, but rejecting it outright could frustrate a customer and lead to churn. Instead, propose a solution that automatically refunds or credits the excess, while flagging for review if suspicious.

1. Clarify the scenario

Ask questions to understand the type of overpayment (e.g., customer pays too much, system error, duplicate payment) and the business context (e.g., one-time vs. recurring, B2B vs. B2C).

2. Identify stakeholders and goals

Consider the impact on customers, finance, operations, and engineering. Define what success looks like: minimizing friction, reducing manual work, preventing fraud, etc.

3. Evaluate options and trade-offs

Compare rejecting outright vs. alternatives like auto-refund, credit, or manual review. Assess pros and cons for each stakeholder and the system.

4. Propose a solution

Recommend a primary approach (e.g., auto-refund for small amounts, manual review for large) and explain how it aligns with business goals and technical feasibility.

5. Consider implementation and edge cases

Discuss how to implement (e.g., API design, idempotency, notifications) and handle edge cases like partial overpayments, currency issues, or regulatory constraints.

Key Points to Mention

  • User experience: rejecting overpayments can cause frustration and support burden; alternatives like auto-refund improve satisfaction.
  • Financial risk: holding overpayments may create liability or compliance issues; rejecting might be safer but less user-friendly.
  • Operational cost: manual review is expensive; automation can reduce cost but requires robust logic.
  • Technical implementation: idempotency keys, webhooks, and clear API responses are crucial for handling overpayments gracefully.
  • Business rules: thresholds for auto-refund vs. manual review, and policies for different customer segments.
  • Edge cases: partial overpayments, multiple currencies, and regulatory requirements (e.g., escheatment).

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