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My overlays, frames, alphas and elements have grey and white blocks surrounding them. What does that mean?

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Last Updated
12th o September, 2008

A grey and white checkerboard in Photoshop and PSE indicates transparency.
When the program needs to show you that the file is transparent, it uses this checkerboard pattern.
(It can't use white since white is white!)
When these files are dragged onto a background paper, the checkerboard pattern disappears, like the file was printed on a piece of clear glass.
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