So it looks like you have other hidden fees...
Good Luck
Man... what hidden fees? It's dead simple:
Bit-pay Bitcoin to Bitcoin is 1%. Paypal USD to USD is 3% (or 5% if it's less than $2).
Bit-pay Bitcoin to USD is 3%. Paypal USD to other is 5.5% (or 7.5% if it's less than $2).
And since they convert USD prices to bitcoins, they have to deal with market fluctuation. The other day the bitcoin price dropped from $12 to $10 in less than 5 minutes. That's ~20%.
They are the only ones providing such service. Prices could be more competitive if there were alternatives, but I don't think they are expensive.
As 3-1=2 apparently isn't oblivious to guys with tons of knowledge in "cc merchant charges", maybe it is legitimate to call them hidden fees