A postage stamp that has been cancelled prior to being used on an item of mail, often to facilitate bulk mailing.
Early 20th century. Apparently shortened from precancellation, probably originally as a graphic abbreviation.
with object To cancel (a postage stamp) by means of a frank ahead of its use, often to facilitate bulk mailing.
2with object To cancel beforehand; to cancel giving prior notice.
Early 20th century; earliest use found in Conditions Use of Precanceled Postage Stamps. From pre- + cancel.