A cutter can cut transfer paper, but, (there is always a but) to cut out a design, you need a cutter with an optic eye. This allows the cutter to follow a pre-determined path (vector path) on the outline of your design. The SW will put registration marks and you print those on the transfer paper with your design. The optic eye sees the marks and knows where your design is and cuts around it. Other cutters without an optic eye will cut other vector files like text which is prob. what you saw done at the shows.