You will need the Stampin' Up! Scallop Edge Border Punch to create the Ric Rac. 

Here is my card and the tutorial follows

I used a strip of card stock that was 1" wide.  Punch a row of scallops

Flip your card stock strip over and line up the edge of your card stock in the middle of a silver scallop on the punch guide and punch.  This strip ended with a whole scallop, see the next picture if you end with a half scallop

If you have a half scallop at the end of your strip, place the edge of the card stock on the guide between two scallops and punch

This is what your strip will look after this step, you can begin to see the Ric Rac!!

Continue lining up the scallops on the guide and punch to the end.

You can either punch both sides to the egde or use scissors to trim off the edges.

It is done!!!  Now go use it on a card. :-)

Supplies used:

Card Stock - Rose Red, Taken with Teal, Whisper White

Ink - Pumpkin Pie and Taken with Teal markers

Bali Breeze Designer Series Paper

Flower Fusion Felt Flowers, Bold Brights Brads, Word Window Punch