Now go to Image > Adjustments > Threshold
and move the slider until you get the image something
like mine. You might not get exactly like this but that
is ok. Save it on your desktop, give it any name you want
I save it as cow_skin.psd :) Then close it.
Open a new window with 500 width and 150 height, witha
a white background. Type on it anything you like, and
try to choose a bold type font with a big size like 70px.
Now select your layer with the text and go to Filter
> Distort > Displace Choose the fields as shown
below.
After you press OK, it will open up a window - Choose
a Displacement Map. Here you have to choose the image
we have created earlier, in my case it will be cow_skin.psd
After choosing you image click OK.
And finally here is our displace effect on text. Cool
huh!?