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Circle·Software Engineer·Onsite - Coding / Algorithms·Intermediate

Intermediate
May 2026

Summary

Did a coding round for a Software Engineer role at Circle centered entirely around a banking payment system design problem. Pretty involved for what felt like a single question, lots of moving parts to juggle at once.

Questions Asked (1)

Q1

Design and implement a banking payment system that supports canceling previously scheduled payments, extends payment scheduling to persist and report both success and failure outcomes, removes obsolete payment cases, and generates a report of outgoing transactions sorted by total loss amount.

System DesignData ModelingAlgorithms & Data Structures
Author's notes

This was a lot to unpack in one sitting.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements and scope, then design a data model that captures payment states, scheduling, cancellation, and outcomes. Outline the system components and APIs, and discuss how to generate the required report efficiently. Finally, address edge cases, scalability, and trade-offs.

Pro tip: Emphasize idempotency and auditability in payment operations, as these are critical in financial systems. Also, proactively discuss how you would handle failures and retries to demonstrate reliability thinking.

1. Clarify Requirements and Scope

Ask questions to understand constraints: expected volume, latency, consistency needs, and regulatory requirements. Define the core entities: payments, schedules, cancellations, and reports.

2. Design Data Model and State Machine

Model payments with states (scheduled, processing, succeeded, failed, canceled) and transitions. Include fields for scheduling, cancellation, and outcome reporting. Consider using an event-sourced or append-only ledger for auditability.

3. Define APIs and System Components

Specify endpoints for scheduling, canceling, and querying payments. Outline services: scheduler, payment processor, cancellation handler, and reporting service. Discuss how they interact and handle failures.

4. Implement Reporting and Sorting

Design a query to aggregate outgoing transactions by total loss amount (e.g., sum of failed/canceled payments) and sort descending. Discuss indexing, caching, or pre-aggregation for performance.

5. Address Edge Cases and Scalability

Cover idempotency, concurrency, retries, and data consistency. Discuss partitioning, sharding, and how to handle large volumes. Mention monitoring and alerting.

Key Points to Mention

  • Idempotency keys for cancel and schedule operations to prevent duplicate actions.
  • State machine for payment lifecycle with clear transitions and audit logging.
  • Event sourcing or append-only ledger for auditability and reporting.
  • Database schema design with indexes on status, scheduled date, and amount for efficient queries.
  • Asynchronous processing with message queues for scheduling and cancellation.
  • Report generation using SQL aggregation (SUM, GROUP BY) and sorting, with considerations for performance.

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