Bandicam Game Lag

When I run bandicam, there's a lag where it feels like I constantly get interped, feels like I'm lower fps and shots are consistently worse. Been experimenting for months and it's not just in my head. FPS and ping are perfectly normal (200fps constant) when running bandicam, but shooting and turning are noticeably choppy. (Not TOO much, still playable, just not at a competitive level).

Some information that may be useless:

Using 1280x1024 resolution and 75 Hz refresh rate for Benq GL2450 monitor.
Native resolution is 1920 x 1080 with 60hz refresh rate.

Processor: Intel (R) Core (TM) i7-4700 MQ CPU @ 2.40 GHz.
Graphics Card: Integrated (Intel).
Windows 8.1
16 GB RAM

More specs: http://weborigin-bdc.bestbuy.ca/en-CA/product/hewlett-packard-hp-envy-17-3-touchscreen-laptop-silver-intel-core-i7-4700mq-1tb-hdd-16gb-ram-windows-8-m7-j078ca/10255964.aspx?path=5f31f350c91b77e58ed4430bc97ff158en02
Not using NVIDIA GeForce GT 740M (Gets low fps with Crossfire for some reason, using integrated graphics )


Bandicam settings anyway: Half size, 20fps, 60 quality. Codec is Motion JPEG.
In record settings: recording priority high. changed to normal to see if it fixes the problem, nope.

Tried lowering bandicam settings very low and it's not making anything better. This happened on OBS when trying to livestream also. Thought I'd return to Bandi to see if this is any better now. Need help please, until then, interp city and rough shots.

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