Is there a catch to buying an iPhone at Walmart?

I was at Walmart, and I noticed that the new iPhone 5c was for sale for $74 with a two year contract with Verizon. I'm already with Verizon, and my older contracts are up and I'm due for an update, but I was just wondering how this all works. I asked the lady at the counter but I didn't get very good answers and didn't have much time to, as I was running late for something.

Do I buy the phone from Walmart for $74, and then set up my plan at Verizon? Why is it so cheap? Would the plan be the same, or would I need to pay an extra monthly fee? The lady said that the only thing different was the price, but it just seems too good to be true.anybody have experience with buying phones from walmart?

It will be the same as you would buy it in bestbuy or any other store.

Same

Walmart sells the phone for $20 less than apple but you still need to get a two year service plan in order to use it. That's standard.

they're intentionally under cutting the apple store prices.

retailers can sell merchandise for whatever they want. To keep them from selling it too cheap apple gives them an incentive to keep the prices higher. (they sell them their phones for less money as long as walmart sells it for more)

basically the price is lower because walmart is betting they'll make more money this way.

it's not a scam, but you should always understand your cell phone plan because, well, those are all scams!

The are several catches

You are required to sign another 2 year contract.
If your old phone wasn't a smartphone, you will have to switch plans to one that includes data
If you had an older plan with unlimited data, you lose it.
There's a $35 activation fee