Cut vinyl is when a solid design is cut out of a sheet of vinyl and then heat pressed onto a garment. There is no printing involved in cut vinyl, as the shape of the vinyl itself becomes the design. It is perfect for letters and numbers because it is easily customizable.
With printed vinyl, a design is printed onto thin, clear vinyl, then cut to shape. The entire piece of vinyl then is heat pressed onto a garment. Printed vinyl is perfect for photographs and other full color prints, and for small or intricate designs.