if needle in haystack: is the normal use, as @Michael says -- it relies on the in operator, more readable and faster than a method call.
If you truly need a method instead of an operator (e.g. to do some weird key= for a very peculiar sort...?), that would be 'haystack'.__contains__. But since your example is for use in an if, I guess you don't really mean what you say;-). It's not good form (nor readable, nor efficient) to use special methods directly -- they're meant to be used, instead, through the operators and builtins that delegate to them.
