Hurt when paid out only a quarter! (6)

I believe the answer is:

pained

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

'paid out only a quarter' is the wordplay.
'out' indicates putting letters inside.
'only' becomes 'n' (I can't explain this - if you can you should give a lot more credence to this answer).
'a quarter' becomes 'e'.
'n'+'e'='ne'
'paid' enclosing 'ne' is 'PAINED'.

'when' is the link.

Can you help me to learn more?

(Other definitions for pained that I've seen before include "Caused suffering to" , "Caused hurt." , "Hurt and disapproving (6)" , "Distressed so it hurts?" , "Distressed and annoyed - hurted" .)

I've seen this clue in the Evening Standard.

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