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Here is his post that gives quotes from empire emails he has received.
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There is a huge difference between cashout and chargeback.
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A charge back on a CC (credit card) means that one of his players made a credit card deposit and then either refused to pay the credit card charges or the card was stolen. Either way, Empire gave this person money that they didnt get back.
The affiliate loses 20% of that money just like they would get 20% of any profit EMpire makes on that player. This has nothing to do with cashouts.