Made to pay hundreds by way of punishment (5)
I believe the answer is:
fined
'made to pay hundreds' is the definition.
I can't judge whether this definition defines the answer.
'by way of punishment' is the wordplay.
'by' says to put letters next to each other.
'way of' becomes 'd' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'punishment' becomes 'fine' (fine is a kind of punishment).
'd' after 'fine' is 'FINED'.
Can you help me to learn more?
(Other definitions for fined that I've seen before include "Mulcted" , "Fed in (anag.)" , "Imposed financial penalty on" , "Ordered to pay penalty" .)