All cards can be upgraded to level 10, you just can't do so with scanning, unless you have a gold foil which will bring any card to level 20.
After level 10, you gain experience solely by using that card in your card deck and winning fights, whether PVP or story mode.
If you have a card level 10, and you draw it in a virtual pack, you get coins back, depending on its rarity and how you get the extra card (daily spin vs 3 card pack, etc).
Once you reach level 20, you then max out your maximum coins back when you get it virtually. You also gain a gold colored animated GIF.