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PSD (Photoshop Document files) are most often used in Digital Image Files to create templates. When you upload a PSD file, you can create a Digital Image Files template automatically from the file (select the Create Template option on the Upload screen). Digital Image Files creates multiple images from a PSD file with layers if you use the file to create a template; it creates one image for each layer. PSD files are used as templates which can flattened into print ready formats like PNG or JPG.