Why do Verizon charged an upgrade fee for a phone that was bought somewhere else?

[sureshpk]

I recently pre-ordered and bought a Samsung Galaxy Note 20 Ultra directly from Samsung.

I received a bill from Verizon with an upgrade fee of $40!

Is this the common practice? Does Verizon charges its customer an upgrade fee if they decide to change a phone that is not bought from Verizon?

[vzw_customer_support]

sureshpk, We know the importance of ensuring your fees are valid. An upgrade is applied when you buy a new device to replace one that's already on your account. You're charged an upgrade fee whenever you buy a new device at retail price or through our device payment program. Even if the phone is purchased via a 3rd party. Here's a link with more details about upgrading: https://www.verizon.com/support/upgrade-device-faqs/ I hope this information helps. Please let us know if you have additional questions.