Abstract The third observing run of Advanced LIGO and Advanced Virgo took place between 2019 April and 2020 March and resulted in dozens of gravitational-wave candidates, many of which are now published as confident detections. A crucial requirement of the third observing run was the rapid identification and public reporting of compact binary mergers, which enabled massive follow-up observation campaigns with electromagnetic and neutrino observatories. PyCBC Live is a low-latency search for compact binary mergers based on frequency-domain matched filtering, which was used during the second and third observing runs, together with other low-latency analyses, to generate these rapid alerts from the data acquired by LIGO and Virgo. This paper describes and evaluates the improvements made to PyCBC Live after the second observing run, which defined its operation and performance during the third observing run.