Sprocket holes are also the thin, perforated strips alongside sheets of Tractor Feed Printer Paper or other continuous stationery computer output. They are used by the printer's tractor feed pins to pull the paper through the printer. Proper tension on the tractor feeds is essential - too much tension will cause the sprocket holes to separate. In this case the paper will jam the printer or run askew, or the tractor feeds may be popped open by the sprocket holes.
They can be removed from the printer output by a burster, which is often linked in after the printer (and possibly a document signer) in high-volume output operations, such as cheque runs.
Once removed, sprocket holes are sometimes referred to as chad, although this more properly refers to the confetti-like outpunch from the feed holes, or the similar but square holes from punch cards (and Florida electoral booths).