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Backend Challenge - Payment Processing API

Introduction

The "Payment Processing API" challenge is designed to build a REST API that allows users to process payments, handle refunds, and manage subscriptions programmatically.

Objectives

  • Set up a web server capable of handling API requests.
  • Implement endpoints for processing payments, refunds, and managing subscriptions.
  • Handle different payment methods (e.g., credit card, PayPal).
  • Understand HTTP methods (POST, GET, PUT) and status codes.

Instructions

  1. Objective: Develop a REST API that provides functionality for payment processing.

  2. Environment Setup: Choose your preferred programming language (e.g., JavaScript, Python, Java, C#) and set up the necessary environment.

  3. Implementation Details:

    • Define endpoints for payment processing:
      • POST /process-payment: Process a payment with provided details (e.g., amount, payment method, customer information).
      • POST /refund-payment: Initiate a refund for a previous payment.
      • POST /create-subscription: Set up a subscription for recurring payments.
      • GET /subscriptions: Retrieve details about active subscriptions.
      • PUT /update-subscription/{subscriptionId}: Update an existing subscription (e.g., change plan, update payment method).
      • DELETE /cancel-subscription/{subscriptionId}: Cancel an active subscription.
    • Implement logic to interact with payment gateway APIs or libraries (e.g., Stripe, PayPal) for processing payments and managing subscriptions.
    • Handle transactional operations securely and ensure compliance with payment industry standards (e.g., PCI DSS).

  4. Testing: Test your API using a HTTP client (e.g., Postman, curl).

    • Send requests to each endpoint (/process-payment, /refund-payment, /create-subscription, /subscriptions) with appropriate data payloads (e.g., JSON with payment details, subscription information).
    • Verify that payments are processed successfully, refunds are initiated correctly, and subscription operations behave as expected.

Possible Improvements

  • Payment Method Support: Implement support for various payment methods beyond credit cards (e.g., digital wallets, bank transfers).
  • Webhooks: Set up webhooks to receive real-time notifications about payment events (e.g., successful payments, subscription renewals).
  • Authentication: Secure API endpoints, especially those involving sensitive payment information.
  • Reporting: Add support for generating reports on payment transactions, refunds, and subscription metrics.
  • Integration: Integrate with e-commerce platforms or accounting systems to synchronize payment data.

Conclusion

By completing this challenge, you will gain practical experience in developing a Payment Processing API and learn essential practices for backend development related to financial transactions and subscription management. Explore additional improvements and challenges to further enhance your skills.

Happy coding!