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To insult, to knock, to slather with insults. In common usage, at least in Australia.
I just got paid out by this fat cunt and I was pissed as shit bro.

Why would you pay out Transformers 2?
by Mozric June 28, 2009
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"Pay Out" is a term commonly used in nightclubs and bars that a patron and/or server uses to indicate that it's time for payment.

This is not to be confused with the term pay up, but it is similar to settle up and tab out.
Hey Bill, I'm gonna pay out after I have one more beer.
by Giskard August 10, 2004
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5
to make fun of someone, at times using their own posts/replies in a chat room and/or message board against them
Draccs: I am so fat
Faun: Dude shut up you fucking solar anus
Nyarl: haha fucking payed out:as
by heh March 24, 2003
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6
To insult, dis' or burn someone.
I waz paying him out about spewing from just one drink.
by Diego September 20, 2003
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