Clean lines on textures/decals?

I’m trying to create my own decals using textures. I’m using Photoshop and saving the mas PNG files. However, when I load them in as a texture and create a material instance (decal) I keep getting this weird outline. Why is this happening?


You could play with compression settings. If that doesn’t help then there is a node called Alpha Offset. Use that to shrink the opacity mask.

That happens because you did not add padding to the texture.