Want to avoid last-minute ATM runs. Do most hostels in Brunei take card payments at check-in
I wouldn't risk it. The financial infrastructure here is very different from what you're used to. While you can use cards at some major businesses and upscale hotels like the Radisson, the vast majority of hostels and guesthouses only accept cash. You'll need Brunei dollars for everything from your bed at night to your street food during the day. Just get a good wad of cash from an ATM and you’ll be set.
It's hit or miss, so prepare for cash. I stayed at a place called Hostelite in Bandar Seri Begawan, and they were cash-only. The manager told me it's just simpler for them and avoids transaction fees. My advice is to assume your hostel won't take a card and have enough Brunei dollars to cover your stay, plus a little extra. ATMs are common in the city center, but you don't want to get caught without cash.
Don't count on being able to use your card at a hostel. My experience in Brunei was that cash is king, especially outside of the big hotels. Even places that had a card reader sometimes had issues with it. So, I would definitely make an ATM run as soon as you arrive. The Brunei dollar is pegged to the Singapore dollar, and they're both used interchangeably, so you might even find some Singaporean dollars on you.
Cash is the way to go here, unfortunately. While a few of the newer, more upscale places in Bandar Seri Begawan like CoLiving Hostel may have a card machine, it's not something you can rely on. Most hostels and guesthouses are small, independent operations that only deal in cash. The local currency is the Brunei dollar, and it's best to get a good amount from a bank like Baiduri or an ATM. You'll need it for transport, markets, and food stalls as well.