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What is the difference between an internal and external bleed?

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What is the difference between an internal and external bleed?

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Internal bleed means you would leave 1/8″ border all the way around on the inside of the file leaving any important information out of that area, but keeping background and graphic files in the area. This is done so when they are cut there is room for error because the cutter can not be exact without running your job with crop marks and cutting short stacks, which is slightly more expensive..

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