Recently, Colombo, Spinelli, and Lupker (2020), using a masked transposed letter (TL) priming paradigm, investigated whether consonant/vowel (CV) status is important early in orthographic processing. In four experiments with Italian and English adults, they found equivalent TL priming effects for CC, CV, and VC transpositions. Here, we investigated that question with younger readers (age 7 to 10) and adults, as well as whether masked TL priming effects might have a phonological basis. That is, because young children are likely to use phonological recoding in reading, the question was whether they would show TL priming that is affected by CV status. In Experiment 1, target words were preceded by primes in which two letters (either CV, VC, or CC) were transposed versus substituted (SL). We found significant TL priming effects, with an increasing developmental trend, but, again, no letter type by priming interaction. In Experiment 2 the transpositions/substitutions involved only pairs of vowels with those vowels having either diphthong or hiatus status. The difference between these vowel clusters is only phonological, thus the question was would TL priming interact with this factor. TL priming was again found with an increasing trend with age, but there was no vowel cluster by priming interaction. There was, however, an overall vowel cluster effect (slower responding to words with hiatuses) which decreased with age. The results suggest that TL priming only taps the orthographic level, and that CV status only becomes important at a later phonological level.