Crossword Genius

Compensate fellow with vinyl (5)

Ross

I believe the answer is:

repay

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'compensate' is the definition.
(I've seen this in another clue)

'fellow with vinyl' is the wordplay.
'fellow' becomes 'ray' (man's name).
'with' is an insertion indicator.
'vinyl' becomes 'ep' (I can't justify this - if you can you should believe this answer much more).
'ray' enclosing 'ep' is 'REPAY'.

Can you help me to learn more?

(Other definitions for repay that I've seen before include "Return money borrowed" , "Requite" , "Quite old" , "Settle a score" , "Do or give in return" .)

I've seen this clue in The Mirror.
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