Barack Obama revealed his embarrassment after his credit card was declined at a New York City restaurant last month.
The President admitted that his card was declined when he attempted to pay for a meal with his wife during the United Nations General Assembly in September.
"I was trying to explain to the waitress: 'No, I really think that I've been paying my bills'," he said.
"It turned out, I guess I don't use it enough. They thought there was some fraud going on."
Mr Obama said that "fortunately" First Lady Michelle Obama had a credit card that they were able to use instead.
The President told reporters about the incident as he signed a new executive order aimed at promoting tighter debit card security and preventing identity theft.
"Even I'm affected by this," he added.
The President's executive order calls for more secure payments to and from the federal government, and aims to set up an online, "one-stop resource" for victims of identity theft.
100 million Americans were affected by identity theft in the past year.