Pseudowords created by transposing two letters of words (e.g., MOHTER; CHOLOCATE) are highly confusable with their base word; this is known as the transposed-letter similarity effect. In this work, we examined whether transposed-letter effects occur when words span more than one line (e.g., CHOLO- in one line and CATE in another line; note that the transposed letters L and C are in different lines). While this type of presentation is not the canonical format for reading in alphabetic languages, it is widely used in advertising, billboards, and street signs. Transposed-letter pseudowords and their replacement-letter controls were written in the standard one-line format versus a two-line format (Experiments 1–2) or a syllable-per-line format (Experiment 3). While results showed some decrease in the transposed-letter effect in the two-line and syllabic formats, the transposed-letter effect was still substantial in the accuracy of responses. These findings demonstrate that even when the letters being transposed are relatively far apart in space, the transposed-letter effect is still robust. Thus, a major component of letter position coding occurs at an abstract level.