(m) “Unauthorized electronic fund transfer” means an electronic fund transfer from a consumer's account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit.
This transaction does not meet the definition of an unauthorized transaction, since the customer initiated the payment. At best, this may be considered an error:
(a) Definition of error. (1) Types of transfers or inquiries covered. The term “error” means: (ii) An incorrect electronic fund transfer to or from the consumer's account;
But consider the information you have. A) The customer initiated the authorization. B) The bill is coming due. C) The customer receives the benefit of the payment. If you proceed with a chargeback, what happens next? Possible late fees, possible disconnect, best case scenario is that your customer is going to have 2 payments due on the next billing cycle (the payment that Verizon is going to lose due to chargeback, plus the normal bill due).
Your best course of action (and in the best interest of your customer as well, really) is to deny the dispute based on customer benefit. Document the facts, send your notification letter, and refund any OD/RI fees that occur as a result.
I reject your reality and replace it with my own.