The short version
A buyout covers an early-termination fee, a phone payoff covers handset installments — each up to a stated limit, each requiring you to submit documentation within a window, usually 30 to 60 days. Keep the final bill. Miss the window and the credit is gone.
The two kinds
- TV or internet contract buyout. The incoming provider credits some or all of the early-termination fee your outgoing provider charges, up to a limit, when you take a qualifying package.
- Mobile phone balance payoff. Outstanding handset installments covered up to a per-account limit, usually requiring a minimum number of lines switched and numbers ported in.
The conditions that actually catch people
- You pay first. The fee is charged by your old provider and reimbursed by the new one. Budget for the gap.
- There is a claim window. Typically 30 to 60 days from installation. Submit the final bill as soon as it arrives.
- The service must stay active. Credits are usually paid after a qualifying period, so cancelling early forfeits them.
- Minimums apply. Phone payoffs generally require several lines and ported numbers, not one.
- Limits are per account, not per line. Read that number carefully.
What to keep
The final bill showing the early-termination charge, the installation date for the new service, and any confirmation number from the claim submission. Photograph the equipment you return and keep the return receipt. Those four things are what a disputed claim turns on.
Questions
How does a contract buyout work?
The incoming provider credits the early-termination fee your outgoing provider charges, up to a stated limit, once you submit the final bill within a claim window — typically 30 to 60 days from installation. You pay the fee first and are reimbursed afterwards.
Will a provider pay off my phone?
Some will cover outstanding handset installments up to a per-account limit when you switch a minimum number of lines and port those numbers in. The limits and minimums are specific and are the usual reason a claim fails.
What if I miss the claim deadline?
The credit is generally forfeited. Submit the final bill the day it arrives rather than waiting, and keep the confirmation number.
Coverage data: FCC Broadband Data Collection (December 2024). Every figure here is indicative, varies by address and changes often. Nothing on this page is a quote. Confirm current pricing with the provider or call (855) 463-2084.