Click below to download the PSD template with live text to edit with all the effects applied to the layer.
Below is a tutorial run through of how I did it.
Letterpress effect in Photoshop
1. Create you word you want to letterpress. In my case Letterpress (original, I know!)
2. Add a INNER SHADOW to the text layer.
Blend mode needs to be MULTIPLY at 50% Black.
Distance 2px and Size 4px
3. Now add a DROP SHADOW to the same text layer with the settings:
Blend mode set to NORMAL at 28% white.
Distance 1px and Size 2px.
4. Last thing to do is add a GRADIENT OVERLAY to again the same text layer.
Blend mode NORMAL at 78% Opacity.
Set the GRADIENT from Black to Dark Grey.
Style to Linear, which it should be set to by default.
Angle 90 and Scale 100%.
And hopefully you should end up with something like this!