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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.
Pay Out by Giskard August 10, 2004
The money a prostitute has to pay her pimp each night. Mentioned in 'Whoop That Trick' by D'Jay.
Nigga, i ain't even made pay out yet.
pay out by God of Technology August 13, 2007
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
pay out by heh March 24, 2003
To insult, dis' or burn someone.
I waz paying him out about spewing from just one drink.
pay out by Diego September 20, 2003

pay out of both panty legs 

1. When someone takes advantage of you.
2. Attempting to the upper hand the other person has already.
3. A relationship where one person was trying to use the other to get what they want. When in fact all the other person wanted was to fuck them.
She thought she was being slick, but everyone knows she had to pay out of both panty legs.

to pay someone out 

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.