We examined the representation of two-digit decimals through studying distance and compatibility effects in magnitude comparison tasks in four experiments. Using number pairs with different leftmost digits, we found both the second digit distance effect and compatibility effect with two-digit integers but only the second digit distance effect with two-digit pure decimals. This suggests that both integers and pure decimals are processed in a compositional manner. In contrast, neither the second digit distance effect nor the compatibility effect was observed in two-digit mixed decimals, thereby showing no evidence for compositional processing of two-digit mixed decimals. However, when the relevance of the rightmost digit processing was increased by adding some decimals pairs with the same leftmost digits, both pure and mixed decimals produced the compatibility effect. Overall, results suggest that the processing of decimals is flexible and depends on the relevance of unique digit positions. This processing mode is different from integer analysis in that two-digit mixed decimals demonstrate parallel compositional processing only when the rightmost digit is relevant. Findings suggest that people probably do not represent decimals by simply ignoring the decimal point and converting them to natural numbers.