Yes, you can have multiple copies of a card even after you used that type of card to craft a badge.
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Everytime you get a card there's a tiny chance you get a foil card instead or you could purchase them from the Community market / trade for them.
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Whenever a random card spawn happens either through game drop of opening a booster, you have a flat 1% chance for any given card to be a foil. My record was opening a booster for two foil cards. (In a game where zero foils were on the market, which, ironically, made them worthless.)
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You can use them to make a special foil badge for a game. Usually it has the best-looking badge. The foil badge acts like an independent set that only has one level, but it drops the same emotes and backgrounds, with no boost in rare drops in them. Assuming Steam works as intended, you can see an example on how they look like here:
http://steamcommunity.com/id/talgaby/gamecards/294860/
http://steamcommunity.com/id/talgaby/gamecards/294860/?border=1
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