As I suspected.
I looked at my most recent Device Payment Plan Agreement. Here is section 2. Pay attention to the part I highlighted and put in bold and underlined.
PAYMENTS. Payment is due as stated on your Verizon Wireless bill. IF VERIZON WIRELESS DOES NOT
RECEIVE PAYMENT WITHIN FIFTEEN (15) DAYS OF THE DUE DATE, VERIZON WIRELESS MAY CHARGE
YOU A LATE PAYMENT FEE OF UP TO 5% OF THE UNPAID BALANCE OF YOUR BILL OR $5, WHICHEVER
IS LESS, except where prohibited by law. Your specific payment schedule is provided on page 1. Returned
checks will be subject to a fee of up to $25, except where prohibited by law. Payments you make will be applied
first to balances due under your Customer Agreement and then to balances due under this Agreement. Si
have more than one Installment Loan Agreement on your account, payments will be applied to the oldest one
first, and then to more recent ones in order of age; if two Installment Loan Agreements are entered into on the
same day, the one added to our system first will be deemed older. Your payment schedule is determined by the
date that you accept these terms and conditions, which allows Verizon Wireless to apply charges to your bill. If
you order a Device that is not available for shipment at the time of order, Verizon Wireless will provide you with a
payment schedule based on our best estimate of when your Device will be shipped. Your first payment will not be
due until the Device is shipped, at which point we will charge the credit card you provided at the time of your
Order or, if eligible apply the first payment to your bill. For any Device not available for shipment at the time of
order, you agree that we may update the estimated payment schedule when your Device is shipped, and we will
provide the new payment schedule to you in writing. Additionally, if a delay in accepting this Agreement or
activating your Device results in any charges becoming due on a date(s) later than the payment schedule, we will
provide you with an updated payment schedule on your bill. If you do not activate your Device within forty-five
(45) days of receipt, you cancel your Customer Agreement, you agree that Verizon Wireless may charge, and you
will pay, the entire remaining balance owed for your Device as soon as the next bill. If your Device qualifies for an
early upgrade offer, visit verizonwireless.com/upgradeterms for further details, terms and conditions.