How would you design a scalable cancellation and refund system to handle millions of users with different refund rules per product?

hard📝 Trade-off Q8 of 15

LLD - Design — Hotel Booking System

AStore all refund rules in a single monolithic database table without caching

BUse a microservices architecture with separate refund service and product-specific rules stored in a fast key-value store

CCalculate refunds on client side to reduce server load

DUse a single-threaded server to process all refund requests sequentially

Step-by-Step Solution

Solution:

Step 1: Identify scalability needs
Millions of users require distributed, scalable design.
Step 2: Choose architecture and data storage
Microservices with dedicated refund service and fast key-value store for rules enable scalability and flexibility.
Final Answer:
Use a microservices architecture with separate refund service and product-specific rules stored in a fast key-value store -> Option B
Quick Check:
Scalable design = Microservices + fast storage [OK]

Quick Trick: Microservices + fast storage for scalable refund system [OK]

Common Mistakes:

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