Once in a fight there is so much adrenalin running through your blood it doesn't really hurt when your getting hit as far as pain, but if hit with the right shot it very well could be lights out which I've heard is painless!
Don't forget to also clench your jaw along with the neck and all that... Don't be the one to foolishly leave their mouth wide open...
Getting punched by a blow that you not only see coming but you are also prepared to receive is usually not a big deal...
It sounds like you just have a little confidence problem, if that's the kind of 'experience' you need to get to where you can feel comfortable with the idea of being in that situation, maybe you should get some gloves and slowly start to "play" with some a couple of friends? And by play you know what exactly what I mean... HOW I mean it... As in slowly at first and for ALL involved best interests. Sportsmanship, your all doing it for 'education' and 'self improvement' right? Simulate the situations that have you worried in a safe and controlled environment.
Sounds like you want to take boxing lessons!
If you can't block it with your hand, arm, or shoulder for whatever reason. Tuck your chin, roll with the punch. If you've never been hit before, the pain alone can be jarring. Feeling yourself bleed, feeling your nose fracture, your lip bust, or getting hit in the eye, all can be jarring enough to make someone not be able to "take a punch" if they can't psychologically handle it.
Flex all the muscles in your neck and head to keep your head from getting snapped back.
I've never been in a fight before but I've seen guys get punched in the face but keep moving as if it didn't happen at all, is it psychological ?