You can for example use transparent background and white text in 2 layers while having the Blend mode of the upper layer set to Difference. After you are done with these layers, you can merge them and eventually invert the result.
How do I mimic this effect?
Like in the ESRB logos?
I want to make an icon that looks kinda like the ESRB logos, how the text is black on white background but where letters overlap that spot turns white too. Is there a way to do this with layer blending? I'm not sure how to do this.
http://admintell.napco.com/ee/images/uploads/gamertell/esrb_ratings_logo_300.png