This is the final version of the article. Available from the American Institute of Physics via the DOI in this record.We show that thermal-stability and the associated switching field in well segregated, nanoscale granular materials is explained by grain boundary and interface effects. Grain boundaries pose a fundamental limit on scaling rooted in their chemical and morphological structure, while exchange interactions across interfaces cause the switching to deviate from the expected coherent Stoner-Wohlfarth behaviour. Measurements and simulations of CoCrPt-systems show a clear shift in applied field angle behaviour, arising from exchange-coupling between magnetic-phases, while the quantitative switching field can only be explained by a transition layer surrounding the grains. These results are potentially significant for Heat-Assisted-Magnetic Recording and Bit-Patterned-Media Recording. © 2013 AIP Publishing LLC.We would like to thank the EPSRC for financial support under Grants No. EP/G032440/1, EP/G032300/1, the WWTF Project MA09-029 and the Royal Society.