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So I'm designing transfer decals for a club. The selected portion in white needs to be transparent, but it also needs to cut out the background shapes in order to have a transparent border for the font below the selection. I've tried a "knockout" tutorial but that didn't give me the results I wanted.

Thanks!

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Using Transparency Masks.

Make sure your foreground shape (the cutout) color is set to white and in the foreground (above the other objects/paths).

shapes

Now select all (both) of your objects and open the Transparency Panel

Window → Transparency or Shift+Ctrl+F10.

Click on Make Mask and uncheck Clip and select Invert Mask

make mask

Result:

result

You can also learn more about this by watching this video from Adobe.

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