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TeachMeFinance.com - explain Prepaid Prepaid -- 1. A notation on a shipping document indicating that shipping charges have already been paid by the shipper to the carrier, or it is an expression of the intention that payment is to be made by the shipper. 2. An expense paid before it is currently due. 3. A service or good paid for before it is delivered. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.