Merchant Automotive 10604 263XHD Transfer Case

PART# 10604 | SKU ME10604
★★★★★ ★★★★★ 4.8 (26 Reviews)

Vehicle Fitment For:
2001-2007 GM 6.6L Duramax LB7/LLY/LBZ (With Push-Button Operation)

See full application list below
$2,249.95

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Description

The Merchant Automotive 10604 263XHD Transfer Case is an upgraded replacement for your 2001-2007 GM 6.6L Duramax LB7/LLY/LBZ with push-button transfer case operation. Built for increased durability, and reliability, Merchant Automotive has addressed common failure items in the factory case. 

Merchant Transfer Case Pump Upgrade
The GM transfer case use a gear pump inside the case that is driven off the mainshaft. This pump forces oil to the planetary as well as the drive sprocket sleeve. The 5 tabs around the housing fit into the spots in the rear housing are what positions the pump. Over time, the pump can start to wear on the rear housing. This is commonly referred to as pump rub. Each transfer case includes the Merchant Automotive Pump Upgrade to alleviate these "Pump Rub" issues.  

Magnetic Drain Plug
Help extend fluid life, and the life of your transfer case with the Merchant Automotive magnetic drain plug. The drain plug catches debris instead of circulating it through the case. Also included is a fill plug made of high strength corrosion resistant stainless steel. 

Merchant Automotive Transfer Case Oil
The included Merchant Transfer Case Oil is specially formulated for your GM transfer case to reduce wear, increase shifting performance, increase component efficiency, and increase driveline performance by reducing clutch chatter. 

Features:
  • NEW 263XHD Transfer Case
  • Brand New - No Core Charge
  • Upgraded For Durability & Reliability
  • Includes Transfer Case Pump Rub Fix
  • Ships With Merchant Transfer Case Oil
  • Includes 2-Quart Bottle Of Transfer Case Oil
  • Magnetic Drain Plug - Captures Small Debris

Note: 
This is for trucks with Push-Button transfer case operation. If you have a manual lever on the floor, see Merchant Automotive 261XHD Transfer Case (Part # 10603).
Encoder motor is not included.
Transfer Case will be shipped with a 2 Quart (64 fluid oz.) bottle. The transfer case WILL NOT BE FILLED WHEN RECEIVED. One Transfer Case will use 64 fluid oz. You MUST fill the transfer case before operating the vehicle or severe damage to the new transfer case will result.
Manufacturer Warranty*:
2 Year / Unlimited Mile

Instructions & Tech Info

Installation Info
Customer Average
1 Hour

ME10604 Installation Video

Reviews For Merchant Automotive 10604

Overall Rating
4.8/5
26 Reviews
Rating Snapshot
Currently Viewing Reviews with a rating of 5. Click here to reset.
Verified Buyer
★★★★★ ★★★★★
Merchant Automotive Trans case
Ken Yo (Pomfret, CT) | March 26th, 2026
Great deal, high quality product with the pump rub upgrade and magnetic drain plug. Plus, it’s a brand new piece. Was able to install myself with the truck on Jack stands. Went right in with no issues. 2007 Classic 2500hd Duramax with 200,000.
Verified Buyer
★★★★★ ★★★★★
T-case
PM (New York) | March 15th, 2026
Sales was pretty knowledgeable and had an answer for all my questions. Hopefully don’t have to buy another one, but would definitely buy it from XDP again.
Verified Buyer
★★★★★ ★★★★★
Smooth start to finish
w42pfc (NC) | January 13th, 2026
Easy order process, quick shipment, exact correct item for the vehicle, 0 problem installation.
Verified Buyer
★★★★★ ★★★★★
Great product
Unclefudd (East Idaho) | September 28th, 2024
Super fast shipping and a great product. I ordered a direct replacement transfer case for my 2004 chevrolet duramax. Came with everything needed to get back on the road and I couldn't be happier.
Verified Buyer
★★★★★ ★★★★★
2002 Duramax, 263XHD
Lou (Schaefer) | August 11th, 2024
Website description for features and fitment was easy and spot on. Ordering was easy and shipping was wicked fast. Installers said installation was easy and transfer case was shipped in proper packaging and arrived to their shop in perfect shape. Truck seems much stronger and hoping to get many more years of service. Thanks!
Verified Buyer
★★★★★ ★★★★★
Transfercase 263xhd
Richard (Panama City) | January 31st, 2024
The shipping was fast. Got me back on the road and the truck is so smooth now. I got no worries now. Drove the truck 8 hours on the highway after installation and it was perfect.
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Frequently Asked Questions

Is there a core charge on the t-case? What is the warranty?
This t-case features a 2-year / unlimited mileage warranty and has no core charge.
Do you have one for a 2500 HD duramax with stick and not push button?
We have the floor-shift 261XHD model available. Click Here to view the product page.
Does this transfer case have a 32 spline yoke?
The Merchant Automotive 10604 263XHD Transfer Case has a 29 Spline Input Shaft to the transmission and a 31 Spline Output Shaft to the driveshaft.
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Specifications For Merchant Automotive 10604

MPN 10604
SKU ME10604
ID 33436
Manufacturer Name Merchant Automotive
Shipping Weight 89.00 lb.
Shipping Length 12 in.
Shipping Width 20 in.
Shipping Height 12 in.
Fuel Type Diesel
Manufacturer Warranty* 2 Year / Unlimited Mile
Prop 65 Prop 65 WarningWARNING: Cancer & Reproductive Harm - P65Warnings.ca.gov
Cross Reference # 412-456, 412-54039-3, 412-540, 12573382, 24228411, 12575648, 12576352, 12579909, 12581004, 12584758, 12585237, 12588516, 15005450, 15057935, 15772805, 24228417, 24238188, 24238841
Internal L3R5

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Product prices marked with an * may require additonal fees, such as a core charge, which will be displayed in the cart.