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To 'pay someone out' or a 'pay out' means 'insulting someone".
A 'payout' is an 'insult'
to pay someone out :

Why did you pay him out, that was seriously uncalled for.

Don't pay someone out because of their race, that's just pathetic...

Paid him out, real good.
by AwesomeFivesome December 13, 2010