This is not clear on the the website and I only found out by calling Customer Service.
In MyVerizon you can view your VerizonEdge contract via a pop-up box.
You see the amount financed and your VerizonEdge balance. Also displayed is the upgrade option and buyout contract option.
If you choose to buyout, you are charged the balance BUT it only goes against your bill - NOT your VerizonEdge Contract!
This is silly, of course, because it is obvious what you want to do by selecting buyout when viewing your VerizonEdge contract.
If you want the amount paid applied to the VerizonEdge contract, you MUST pay at a Verizon Store!
Fortunately, I called customer service before completing the transaction online. He agreed this is NOT clear online and that it was a good thing I called before paying.