Hard Design: Payment System (Stripe/PayPal)

What is double-entry bookkeeping and why is it used in payment systems?

— Tests your understanding of this concept.

Answer Options

A Recording each transaction twice for redundancy

B Every transaction creates a debit entry and a credit entry ensuring the ledger always balances

C Two separate databases for payments

D Auditing payments twice before processing

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This question is from the Design: Payment System (Stripe/PayPal) topic (System Design Cases).

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