The dotted safety line (also known as a bleed line) is .125 inches (or 9pts) from the card edge.
Though your design should fill the entire card, be sure that key elements are within the dotted lines (i.e. names, faces, text, etc).
The safety line indicates anything within that boundary is guaranteed to print and should not be trimmed off during cutting. Anything outside of the dotted lines is subject to being trimmed off.
If an important element of the design extends past the line, I'd recommend either:
- Adding a border (using Photoshop or Pixlr) which will shrink the sizing
- Selecting an alternate photo where you're both positioned within the safety line