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Data Structures & Algorithms
Low Level System Design
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DSA, High & Low Level System Designs
About Lesson
Purpose of the Activity Diagram

The activity diagram illustrates the sequence of steps involved when a user performs a transaction on PayPal. This includes logging in, selecting a payment method, processing the transaction, and receiving confirmation. It highlights the interactions between the user and the system, decision points, and alternate paths (like transaction failure).



Main Flow of Activities

Start
  • The process begins when a user opens the PayPal application or website.

 

User Authentication
  • The user logs in using credentials (email/phone + password).
  • The system verifies the credentials.
  • If login fails, the system prompts to re-enter or recover credentials.

Choose Transaction Type

Once authenticated, the user selects the type of transaction:

  • Send money
  • Request money
  • Pay for goods/services

 

Enter Recipient Details
  • The user enters the email or phone number of the recipient.
  • The system checks if the recipient is registered with PayPal.

 

Enter Payment Amount
  • The user specifies the amount to be sent.
  • Optionally, a note can be added.

 

Select Payment Method

The user chooses from linked payment options:

  • PayPal balance
  • Bank account
  • Credit/debit card

 

Validate Payment Details

The system validates:

  • Available balance or card limits
  • Currency compatibility
  • Account restrictions (if any)

 

Decision: Is Validation Successful?
  • Yes: Proceed to next step.
  • No: Error is displayed, user is prompted to correct or try another method.

 

Confirm and Submit Payment
  • The user confirms transaction details.
  • The payment is submitted to the PayPal server.

 

Transaction Processing
  • The system processes the payment.
  • Deducts the amount from the sender.
  • Credits it to the recipient’s account.

 

Generate Notification
  • System sends transaction confirmation to both parties via email/SMS/app.

 

Transaction Completed
  • Status is shown to the user with a unique transaction ID.


Visual Elements in the Activity Diagram

You can include these visual symbols in the diagram when drawing:

 

  • Rounded ovals: Start and end points
  • Rectangles: Actions like “Enter Amount”, “Confirm Payment”
  • Diamonds: Decision nodes such as “Is Validation Successful?”
  • Arrows: Flow from one activity to another
  • Swimlanes (optional): To separate user actions from system actions
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