“Full Bleed” and “Print to the Edge” are NOT the same thing BUT are similar.

Quick Answer:
Bleed = Extra background content that bleeds past the cut edge.
Full bleed is a method of printing that commercial printers use to achieve the “print-to-the-edge” look.

Requirements: 
Bleed Edge – 0.125in outside all four sides
Safe Zone – 0.125in inside all four edges

If you aren’t sure what a bleed is: Choose “Fix it for me” and then make sure all text is at least .20in away from your edges.

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Full Bleed Printing Method:
Full bleed is a method of printing that commercial printers use to achieve the “print-to-the-edge” look. It requires the ability to “cut into” the artwork by adding extra background content to the print file. This is needed because with commercial printing and the high speed of it the equipment can’t actually print to the edge of the sheet. Everything gets printed on large sheets and then cut out. 
 
Margin of Error!!!
The printing/cutting process is not 100% precise, it’s critical to have wiggle room. The full bleed method is used to create that wiggle room. This means background graphics are extended past the cut edge so that cutting blades can cut into the print without any text being cut. This method requires all text to be a minimum distance away from the cut edge for safety while allowing edge graphics to be slightly cut off.

What can go wrong?

No Bleed Edge Provided
Since the cutting process is not 100% precise. If a bleed edge is not provided AND either the printing/cutting process is no 100% perfect then you’ll end up with white margins at the edges of your file.
 
Text/Important Graphics (logos) too close to the edges.
Since the cutting process is not 100% precise. If a bleed edge is not provided AND either the printing/cutting process is no 100% perfect then you’ll end up text and/or important graphics that get trimmed off during cutting.

How to Fix it?

Always include a bleed edge.
Bleed edge = Extra Content that will be cut off.
How much? = An extra .125in on all four edges.
Example:
A 5in x 7in print  should be 5.25in x 7.25in 
.125in + 5in + .125in = 5.25in
 
Always keep important text away from the edge:
Safe Zone = All Text needs to be at least .125in away from the cut edge.
Example:
A 5in x 7in print should have no text outside
4.75in x 6.75in.