At each bike station, you dip in your credit card to buy a one day, one month, or one year pass that gives you access to all the bike stations around the city. You can then rent bikes by the hour (with the first 30 min of each pickup being free). You choose a bike and 'unlock' it with a 3 digit code printed out on your receipt. Then ride around the city- there are miles of designated bike lanes and hundreds of stations around Montreal.
http://montreal.bixi.com/rolling-with-bixi/how-it-works
It's rolling out in Boston and London and we hear rumors that it may hit LA and SF!
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